Hybrid cars to get cheaper?
The entire world is moving to more environment-friendly fuel options. World over, we are seeing the rise of EVs. Even in India, we are seeing the change, but at a slower pace. In India, it could take some time before EVs become mainstream. Before EVs, we could see more hybrids and alternative fuel cars grabbing the market. Even the government is working on making hybrid cars more affordable to accelerate their growth. So what is the government going to do? How will it make hybrid cars more accessible? In today’s article, let’s find out.
Affordable hybrid cars – How will this happen?
Currently, the Indian car taxes are skewed on the type of powertrain. Now, the government has started working on a balanced structure that will align more with the vehicle emission norms for vehicles. Authorities are also examining both global and domestic standards to figure this out. So how does it help? The government is looking to lower the taxes on hybrid cars. These details were shared by Ministry of Heavy Industries Secretary Arun Goel to Autocar India.
Current tax system
Currently, electric vehicles are taxed the lowest, at 5%. On the other hand, strong hybrids attract 43% tax, which is one of the highest taxes on cars in India. Normal ICE cars attract different taxes based on the length and engine size. Sub-4m cars with a 1.2-litre engine or lower attract 29% tax, sub-4m cars with a 1.5-litre engine or lower attract 31% tax. For cars bigger than 4-metre and offered with a 1.5-litre engine or lesser, are taxed at 45%. Cars longer than 4m and with an engine larger than 1.5-litre attract a 48% tax. So, if the government can lower the tax on strong hybrids, we could see more affordable hybrid cars in the future.
Affordable hybrid cars – the future of hybrid?
As explained above, hybrid cars incur heavy taxes. Even with this, we have seen some new launches in the hybrid segment. Earlier this year, Honda launched the City Hybrid. Now, Maruti and Toyota have launched the HyRyder and Grand Vitara, respectively. Toyota is also launching the Innova HyCross in the coming months. Affordable hybrid could be the perfect go-to option in India before we go fully electric.
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