Hyundai might cancel hybrid plans for India

Hyundai might postpone or cancel its plans to introduce hybrid vehicles in India, sighting an unfavourable tax structure.

The government recently introduced tax reforms, under which, hybrid vehicles attract 28 percent GST and an additional 15 percent cess. This puts hybrid cars in the same tax slab as petrol and diesel-powered luxury cars. Pre-GST, the effective tax on hybrid vehicles was 30.3 percent. After the reforms were introduced, this rate has gone up to 43 percent.

Hyundai had earlier announced plans to showcase its Ioniq hybrid model at the 2018 Auto Expo. According to media reports, these plans have been shelved and the company will now look at introducing electric vehicles instead. Hyundai was also planning to introduce mild-hybrid versions of existing models like the Creta and the new Verna. This plan has been adversely affected by the new tax structure as well.

Source: ET Auto