Why Is Toyota Camry So Expensive in India
The 2025 Toyota Camry comes with a starting price of Rs. 48 lakh (ex-showroom), making it one of the most expensive midsize sedans in India. Compare that to its US price of around $27,000 (approximately Rs. 22 lakh), and you’re looking at more than double the cost. For many car buyers, this raises an obvious question: why does the Camry carry such a heavy price tag in India? The answer isn’t simple. A mix of government taxation policies, import regulations, limited market demand, and positioning strategy all contribute to making the Toyota Camry an expensive purchase. Let’s break down exactly what’s driving this price difference. Understanding the Import Structure The biggest factor behind the Camry’s high price is how it enters India. Toyota imports the vehicle through the CKD (Completely Knocked Down) route. This means the car arrives as individual parts and components, which are then assembled at Toyota’s facility in India. Unlike mass-market models like the Fortuner or Innova that are manufactured locally with high production volumes, the Camry comes from overseas. This immediately subjects it to multiple layers of taxation. Here’s how the tax structure works. First, Toyota pays a 15% import duty on the CKD kit. Then comes the Integrated GST at 18%. After assembly, the government applies a 28% GST on the final product, plus an additional 15% cess because the Camry has an engine larger than 1,500cc. When you add state-level road tax (around 10% in most regions), insurance, and other charges, the price shoots up dramatically. Let’s put this in perspective. A CKD kit worth Rs. 20 lakh becomes Rs. 38-40 lakh after all these taxes before even reaching the showroom. State-level charges push it further to the Rs. 48 lakh mark you see today. Why Not Manufacture Locally? You might wonder why Toyota doesn’t just build the Camry in India to avoid these taxes. The answer comes down to market demand. The D-segment sedan category (which includes the Camry) has extremely limited appeal in India. Most buyers at this price point prefer SUVs like the Fortuner or luxury German sedans like the Audi A4 and BMW 3 Series. The Camry typically sells just a few hundred units annually, nowhere near enough to justify setting up a dedicated manufacturing line. Building a local production facility requires massive investment in tooling, equipment, and supply chains. For a car that sells in small numbers, this doesn’t make financial sense. Toyota would rather use its Indian manufacturing capacity for high-volume sellers like the Fortuner, Innova Hycross, and Glanza. So the CKD route becomes the practical choice. It allows Toyota to offer the Camry to Indian buyers without the overhead of local manufacturing, but the trade-off is a higher sticker price. Currency Exchange Fluctuations Another layer to consider is the exchange rate between the Indian rupee and Japanese yen. When the rupee weakens against the yen, the cost of importing components increases. These currency movements directly affect the landed cost of the vehicle. Over the past few years, the rupee has generally depreciated against major currencies. This means Toyota pays more in rupee terms to import the same CKD kit, and these costs eventually pass on to buyers. What You’re Actually Paying For The high price tag doesn’t just reflect taxes and import costs. The Camry is packed with features that justify its positioning as a premium sedan. The 2025 model includes a 2.5-liter hybrid engine paired with a fifth-generation hybrid system, delivering 25.49 km/l fuel efficiency. This technology doesn’t come cheap. Inside, you get a 12.3-inch touchscreen infotainment system with wireless Apple CarPlay and Android Auto, a 12.3-inch digital instrument cluster, a 9-speaker JBL audio system, and three-zone automatic climate control. The rear seats feature power recline with dedicated controls, making the Camry a favorite for chauffeur-driven owners. Toyota Camry Safety features include nine airbags, Toyota Safety Sense (which bundles lane-keeping assist, adaptive cruise control, pre-collision alert, and automatic emergency braking), a 360-degree camera, and parking sensors. The build quality, cabin refinement, and NVH (noise, vibration, harshness) levels match or exceed luxury sedans costing much more. For comparison, Castle Toyota locations across Jalandhar, Amritsar, and other Punjab regions report strong interest from buyers who prioritize long-term reliability and low running costs over flashy performance. How the Camry Compares to Competitors At Rs. 48 lakh, the Camry sits in an interesting position. It costs more than the discontinued Skoda Superb (which was priced around Rs. 35-40 lakh) but less than entry-level luxury sedans like the Audi A4, BMW 3 Series, or Mercedes C-Class, which start around Rs. 50-60 lakh. The difference is in the approach. German luxury sedans focus on sporty handling, brand prestige, and cutting-edge interiors. The Camry focuses on comfort, rear-seat space, hybrid efficiency, and Toyota’s legendary reliability. Maintenance costs for the Camry are also significantly lower than German rivals. For buyers who want a refined, comfortable sedan without the high service bills of luxury brands, the Camry makes sense. But you’re still paying luxury-car money for a non-luxury badge. Market Positioning and Brand Value Toyota prices the Camry deliberately. The company knows the sedan occupies a niche market and positions it as a premium product. Part of what you’re paying for is Toyota’s reputation for durability and low ownership costs. Studies consistently rank Toyota among the most reliable brands globally. The Camry specifically has earned high marks from J.D. Power and other consumer research firms for dependability. Owners report fewer problems per 100 vehicles compared to most competitors. This reputation allows Toyota to command a premium. Buyers know they’re getting a car that will likely run trouble-free for years with minimal unexpected repairs. The resale value of a well-maintained Camry remains strong, which helps offset the initial purchase price. Why Buyers Still Choose It Despite the high cost, the Camry continues to find buyers in India. The typical Camry buyer is usually looking for a chauffeur-driven sedan that emphasizes comfort over sportiness. These buyers value quiet cabins, spacious rear seats, and the peace of