Toyota Motors Corp has stopped developing its market in India. The company has imputed more tax in India for this. This move of the company is a big impediment for the government. Shekhar Viswanathan, vice chairman of Toyota’s local unit Toyota Kirloskar Motor, said the government levies more tax on cars and bikes.
The reason was given for not creating employment
This tax is so high that it is very difficult for companies to expand their business. He said that due to high tax, many consumers are not able to buy vehicles. Due to this, there is no work in factories and jobs are not being generated.
Vishwanathan said in an interview that the message we got after coming here and investing money is that we do not need you. He further said that due to no tax reforms, the company will not come out of the Indian market but will not expand its business.Toyota is one of the largest car companies in the world. It started its business in India in 1997. The Japanese company holds an 89 per cent stake in its local unit. According to data from the Federation of Automobile Dealers Association, the company’s market share in the Indian market fell to just 2.6 per cent in August 2020 from 5 per cent a year earlier.
Vehicle dealers’ association Fada (FADA) said on Wednesday that retail sales of passenger vehicles declined by 7.12% in August. In August last year, 1, 92,189 units of passenger vehicles were sold, which has come down to 1, 78,513 units this year.
The FADA claimed this by quoting vehicle registration data from 1,242 RTOs out of the country’s 1,450 regional transport offices (RTOs). FADA said sales of two-wheelers declined by 28.71% to 8, 98,775 units in August 2020. Whereas, in August 2019, 12, 60,722 two-wheelers were sold. At the same time, commercial vehicle sales fell 57.39% in August. A total of 26,536 commercial vehicles were sold. Whereas, 62,270 commercial vehicles were sold in August 2019.
Three Wheeler sales decrease by 69.51%Toyota Motors Corp,
Three-wheelers saw a big drop in traffic and only 16,857 three-wheelers were sold in August this year. Last year, 55,293 three-wheelers were sold at the same time. That is, their sales shrank by 69.51% in August. FADA said overall traffic of all types of vehicles dwindled by 26.81% in August. A total of 11, 88,087 vehicles have been sold in August this year. Whereas in August 2019, a total of 16, 23,218 vehicles were sold.