Toyota halts expansion in India citing high tax regime: Reports

Representational Image

New Delhi: Toyota Motor Corp has reportedly said that it will not carry on with further expansion plans in India owing to the country's taxation issues.

A Bloomberg report, citing Toyota Kirloskar Motor vice chairman Shekar Viswanathan said that the companies are finding it ‘hard to build scale’, high tax regime.

Viswanathan further told Bloomberg that though the company is not exiting India, it will not scale up either.

Toyota Kirloskar Motor’s sales declined by 48.08 percent to 5,555 units in August. The company had sold 10,701 units in the domestic market in August 2019.

The company had in May partially dealerships and aftersales operations after weeks of nationwide lockdown leading to complete shutdown of manufacturing and retail units.

The company reported 63.53 percent decline in domestic vehicle sales to 3,866 units in June against 10,603 units in the same month last year. In May this year, the company had sold 1,639 units in the domestic market. The company did not export units in June while it had dispatched 804 Etios units in in June 2019.