CNA

BIDADI, India : Toyota is rebooting its strategy for India, doubling down on a bet that emerging markets will learn to love its hybrids, as long as the ...

"India is one of the lowest cost bases for these parts. This will lay the ground for an eventual switch to fully electric or fuel cell vehicles," said one person familiar with Toyota's plans. About 55 per cent of raw materials by value for the E-Drives come from India, two sources said. Toyota is lobbying to get the taxes reduced, sources said. It also comes as India tightens fuel efficiency and emission targets for carmakers. "The hybrid bet is a turning point. Another factor affecting the Hyryder's price is taxation. "As we come down the price points ... However, mild hybrids have smaller batteries and cost far less. To bring down the cost of the Hyryder, which will be sold by Toyota and Suzuki, it will use a hybrid system originally developed for subcompact cars, or one size smaller, according to a Toyota engineer familiar with hybrid technology. The shift is a recognition that Toyota has been unable to bring down the cost of full hybrids to the point where they can always compete on price in markets such as India, the people familiar with Toyota's planning said. Central to the strategy is a drive to cut the cost of full hybrid powertrains by making them in India, where the automaker's factories are running well below capacity, and to source key materials within the country.