Maruti, Toyota may have a reason to worry: 48% GST on hybrid cars, 5% on EVs to continue
In what can be disheartening for auto companies such as Maruti Suzuki, Toyota and Honda, G20 Sherpa Amitabh Kant announced on Tuesday that the government will maintain a large duty differential between electric vehicles and hybrids to promote zero-emission technologies and green mobility in India. Speaking at an event organised by Mercedes-Benz Research and Development India (MBRDI), Kant affirmed the government's commitment to clean mobility through various policy measures.
"We've had a policy framework where the tax on electric vehicles is 5% as compared to 48% on hybrids, which we intend to continue over a long period of time," Kant stated.
Japanese companies like Maruti Suzuki, Toyota, and Honda have been lobbying to reduce GST rates on hybrids from 48%, arguing that hybrids are cleaner than pure-petrol vehicles and should be incentivized. However, companies such as Tata Motors and Mahindra & Mahindra oppose this suggestion, asserting that only zero-emission technologies should receive incentives, and intermediate measures should not get concessions.
