As you might know, the GST council has slapped 43% tax on hybrid cars, putting them on par with luxury cars and large SUVs. Since July 1 2017, the prices of hybrid cars have gone up in multiple lakhs hurting sales. The carmakers have been trying to convince the Government to reconsider such a high number but doesn’t seem to be working out.
Hyundai which had plans to introduce its Prius rival — Ioniq hybrid in India next year, might cancel it citing lack of support. “There is no support for hybrid…I think we might postpone and cancel hybrid products in the Indian market,” said HMIL Managing Director & CEO YK Koo, reports PTI.
In the previous tax structure, hybrid vehicles attracted a tax of 30.3%. Despite the automakers’ effort, the government has hinted that there wouldn’t be any change in the new rate.
Furthermore, recent reports suggest that the GST council might increase the cess on luxury vehicles from the current 15% to 25%.
However, Hyundai might introduce electric vehicles instead. “We have electric and hybrid. We have all kinds of technologies. So, we are planning to consider electric vehicles,” YK Koo said. “We have canceled Ioniq showcase, which was to happen during the next year’s auto show,” he added.
Source: PTI, ETAuto
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