Toyota Motor Corp (ADR) (NYSE:TM) Says 90% Of Camry Demand In India Is For Hybrid Version
Toyota Motor Corp (ADR) (NYSE:TM) is witnessing strong demand for the hybrid variant of the Camry sedan in the Indian market. The company recently disclosed that as much as 90% of Camry sold in India between January and April 2016 were the hybrid model. Demand for the hybrid Camry has been strengthening in India in the recent years, a trend that Toyota hopes will continue in the coming years as the country’s middleclass expands.
419 Camry hybrids sold
Toyota Motor Corp (ADR) (NYSE:TM) sold 419 units of the hybrid version of Camry sedan in the months between January and April, thus accounting for 90% of the sedan sold in the country in the period. During that same period, Toyota only sold 44 units of the gasoline version of Camry. Sales of Camry in India have been shrinking in the recent years.
In 2013, Camry hybrid accounted for only 15% of Camry sales in India, but the number rose sharply to 73% in 2014 and rose further to 86% in 2015.
What’s fueling demand for Camry in India?
The country’s expanding middleclass is one reason premium models such as the Camry hybrid are seeing strong demand. The other reason is the government subsidy. The Indian government is offering Rs 70,000 in cash incentive on each Camry hybrid.
Toyota Motor Corp (ADR) (NYSE:TM)’s Camry hybrid costs Rs 33 lakh in India’s capital New Delhi. Its other hybrid sedan Prius Hybrid costs Rs 38 lakh.
With government discount on Camry hybrid sales, Toyota expects sales of the car to continue improving in the country.
Will Toyota assemble Prius in India?
Of the 9 million hybrid vehicles that Toyota Motor Corp (ADR) (NYSE:TM) sold in 2015, the majority of them were Camry hybrids followed by Prius. It is worth noting that Toyota is the only foreign automaker that assembles and sells hybrid cars in India. Although the company is working to drive interest in its various hybrid models, the management seems undecided whether they could in the future start assembling Prius in India as well.
Toyota Motor Corp (ADR) (NYSE:TM) is battling for the green car market against Tesla Motors Inc (NASDAQ:TSLA). Competition between the two companies is set to intensify as Tesla gears up to launch its mass market Model 3.
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