Hyundai Motors India previously revealed its plans to introduce the ‘Ioniq’ hybrid alongside mild-hybrid compact cars and SUVs. As of now the Korean manufacturer has ditched the plans to showcase the Ioniq at the auto expo next year and have started focusing on other EVs.
And it’s not without a reason. Under the GST regime, hybrid vehicles have been taxed the same as big petrol and diesel luxury cars attracting 28 per cent rate with a cess of 15 per cent. The tax incidence on hybrid vehicles have gone up to 43 per cent from the previous effective tax rate of 30.3 per cent. The government has hinted that it would not review the new rate. In the earlier tax system, hybrid vehicles had attracted excise duty of 12.5 per cent, similar to entry-level small cars such as Tata Nano or Maruti Alto.
Hyundai confirms plans for introducing electric models is under consideration, however hybrid will be the one facing the axe.
