Hybrid Cars To Continue Post GST Says Maruti

न्यूज़ वर्ल्ड इंडिया | 0
| July 10 , 2017 , 20:01 IST

Post GST the trend has been that the Hybrid cars prices have gone up but even then Maruti has decided that they will not stop producing Hybrid cars.

The company said it will continue to offer mild hybrid versions of its Ciaz sedan and multi-purpose vehicle Ertiga despite prices of the models going up by over Rs1 lakh after GST implementation. Under the new tax regime, hybrid vehicles are on the same slab as luxury cars at 28% GST plus 15% cess. At 43%, total tax incidence on these vehicles is higher from the previous effective tax rate of 30.3%.

 “When we decided to implement hybridization, it was done with an aim of making vehicles environment-friendly and improve efficiency, not only in India but also globally. That position remains unchanged,” Maruti Suzuki India (MSI) Managing Director and CEO Kenichi Ayukawa told PTI. He further said: “Unfortunately, GST doesn’t allow hybridization but we have to continuously communicate with the government”.

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While talking to media he was told that Arun Jaitley has hinted that the tax on hybrid cars will not be reviewed Ayukawa said: “People’s opinion sometimes change”. Stressing that “there is some misunderstanding”, he said, “I think in the long term hybridization will contribute to the Indian automobile industry”.

He feels that hybrid cars are the future and if India wants to become environment-friendly then this is the way.