Toyota and Maruti Suzuki are going all out to market their hybrid cars in Uttar Pradesh, India’s most populous state, using Instagram advertisements and telesales to capitalise on tax breaks that have irritated many of its competitors.
The waivers have divided India’s auto sector, with Tata Motors, Mahindra & Mahindra, and Hyundai claiming that sales of pure electric vehicles will suffer. Their efforts to overturn the July ruling failed last month, and they now fear that other states will follow suit.
Salespeople at the Sunny Toyota showroom in Lucknow, Uttar Pradesh’s capital, have been tasked with calling customers who have visited in the last six months to inform them of the benefits of hybrid tax breaks, which will save them $15,800 on the luxury Toyota Vellfire model and $5,200 on the Camry.
“Save big…. The dealer’s Instagram ad stated, “Order now and have your hybrid vehicle delivered right to your doorstep.”
The campaign follows Toyota’s unusual lobbying victory in convincing the state, which accounts for one-tenth of India’s car sales, to enable tax breaks on the sale of hybrid vehicles, resulting in approximately 10% in savings.
India has a federal tax of 5% on EVs, while hybrids are taxed at 43%, which is slightly lower than the 48% levied on petrol vehicles, however state taxes are levied separately and determined by local governments.
Toyota has shifted its global focus away from EVs and towards hybrids, which blend petrol engines and batteries. That tactic could pay off as concerns about charging infrastructure and high pricing reduce demand for EVs internationally, while hybrid sales increase.
In Uttar Pradesh, six Toyota and Maruti Suzuki salespeople, who also support the waivers, said hybrid enquiries were higher and the firms had encouraged them to promote sales.
“We have been ordered to sell a minimum of 250 cars per month. There’s a lot of pressure. “We are attempting to shift all sales to hybrids,” a Maruti salesperson stated.
Toyota has not responded to a request for comment.
According to Rahul Bharti, Maruti’s executive director for corporate relations, showroom queries for hybrids have “nearly doubled since the benefits have been affected”.
Reuters analysed online and WhatsApp adverts and discovered that dealerships are using taglines such as “Enjoy the nil road tax offer” and “Say Goodbye to Diesel”.
At the Sunny Toyota dealership visited by Reuters, salesmen were considering approaching all customers who were interested in purchasing petrol or diesel variations but would now be persuaded to purchase more expensive hybrid vehicles due to the tax break.
Some dealers are recommending clients to act immediately.
“No one knows how long the scheme would run,” said Praveen Saxena, a sales manager at a Toyota showroom in Kanpur, adding that his hybrid car sales increased by 50% as a result of the tax breaks.
K.S. Dhatwalia, a former Indian government officer, elected to purchase a new Toyota hybrid Hyryder due to tax breaks.
“Hybrids are less polluting and there was an additional tax saving too,” he told me.