Nitin Gadkari recently shared a suggestion that could help those considering buying a hybrid car: a significant reduction in taxes on hybrid cars. Speaking at News18’s Rising Bharat Summit 2024, Gadkari proposed reducing the current 48% GST on hybrid vehicles to 12%. This reduction can significantly affect the selling price of popular hybrid models such as the Toyota Innova Hycross on the market.
Toyota Innova Hycross launched a while ago has attracted the attention of buyers, just like its predecessors Innova and Innova Crysta.Toyota offers a powerful hybrid version of the MPV in the market, with prices starting from Rs 25.72 lakh ex-showroom and going up to Rs 30,698 lakh ex-showroom.
For this discussion, we are only looking at the top-end hybrid variant of the Innova Hycross. Currently, if you are planning to buy the top-end ZX(O) Hybrid Innova Hycross, you will have to spend Rs 35.5 lakh to get the car off the road. This price includes ex-showroom price, RTO charges, insurance, CESS and state and central GST.
In the current scenario, the ex-showroom price includes 28% GST (both state and central) and 15% CESS. If we remove these two items, the ex-showroom price of the Innova Hycross Hybrid is just Rs 21.5 lakh.After GST reduction, the ex-showroom price of the Innova Hycross Hybrid will be around Rs 25.5 lakh. This includes 15 percent CESS and 12 percent GST.
This discount will make a significant difference to the price of this vehicle. If you notice, the ex-showroom price is around Rs 5.5 billion cheaper than the current price. With the revised tax rate, the price of vehicles on the road will also decrease. Depending on the city you come from, we can see a difference of around Rs 7 to 10 lakh in the car’s on-road price.
Similarly, other hybrid models such as the Grand Vitara, Toyota HyRyder and Honda City Hybrid may see price reductions.
The top-end Alpha Plus DT Hybrid variant of the Grand Vitara is priced at Rs 20.09 thousand ex-showroom. This includes 28 percent GST and 15 percent CESS. If the GST tax is reduced to 12%, the ex-factory price of the car will also decrease. Also read: Maruti Suzuki to launch 4 new hybrid models: Details
The ex-showroom price of the Grand Vitara will be around Rs 11.45 lakh.If you include 12% GST and 15% CESS, the new ex-showroom price will be Rs 14.54 lakh, a difference of nearly Rs 5.5 lakh.
Toyota Hyryder is also priced similarly to the Grand Vitara and will also have a similar price reduction. We can easily expect a price drop of Rs 5-6 lakh.After 28% reduction in GST and CESS, the ex-showroom price of the City Hybrid is Rs 14.37 lakh. If you add 12% GST and 15% CESS, the amount will be around Rs 18.25 lakh.
