Nitin Gadkari’s Proposal: EVs and Hybrids could get cheaper?
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Union Minister for Road Transport and Highways, Nitin Gadkari, has proposed a significant reduction in taxes on hybrid vehicles, potentially impacting the prices of popular models like the Toyota Innova HyCross. Speaking at News18’s Rising Bharat Summit 2024.
Gadkari suggested reducing the current 48 percent GST on hybrid vehicles to 12 percent, which could lead to substantial cost savings for buyers.
The Toyota Innova HyCross, known for its predecessors’ success, has garnered attention in the market. Toyota offers a robust hybrid version of the MPV, with prices ranging from Rs 25.72 lakh to Rs 30.698 lakh ex-showroom.
Considering the top-end ZX(O) Hybrid variant, the current on-road price stands at Rs 35.5 lakh, inclusive of various charges and taxes.
Presently, the ex-showroom price includes 28 percent GST and 15 percent CESS. However, excluding these elements, the ex-factory cost of the Innova HyCross Hybrid is only Rs 21.5 lakh.
Gadkari’s proposal to reduce GST to 12 percent could significantly impact the car’s pricing. With this adjustment, the ex-showroom cost would be around Rs 25.5 lakh, including 15 percent CESS and 12 percent GST. This reduction translates to a remarkable difference, making the car approximately Rs 5.5 lakh cheaper.
Moreover, this price drop would reflect in the on-road price as well, potentially resulting in savings of Rs 7-10 lakh, depending on the city of purchase. Additionally, other hybrid models like the Grand Vitara, Toyota HyRyder, and Honda City Hybrid are also expected to witness price reductions.
For instance, the top-end Alpha Plus DT Hybrid variant of the Grand Vitara, currently priced at Rs 20.09 lakh ex-showroom, could see a decrease of approximately Rs 5.5 lakh with the proposed GST reduction.
Similarly, models like the Toyota HyRyder and Honda City Hybrid would also benefit from lower taxes, resulting in significant savings for buyers. Overall, Gadkari’s proposal aims to incentivize the adoption of hybrid vehicles and promote eco-friendly transportation options in the country.
