Apart from Electric Vehicles, the government is also focusing a lot on Hybrid Cars. This is the reason why Nitin Gadkari has raised the demand to reduce the GST rate on hybrid vehicles. If this proposal of Nitin Gadkari is accepted then there may be a huge decline in the prices of hybrid vehicles.
The government is continuously working towards reducing pollution and focusing on green mobility. This is the reason why apart from Electric Vehicles, focus is also being placed on Hybrid Cars. For your information, let us tell you that currently 28 percent GST is imposed on hybrid models sold in the Indian market, but some time ago Union Minister Nitin Gadkari has demanded to reduce the GST rate on hybrid vehicles.
Nitin Gadkari has made a good plan so that more and more people leave petrol and diesel and turn to hybrid vehicles. Nitin Gadkari has sent a proposal to the Finance Ministry to increase the GST rate on hybrid vehicles to 5 percent and GST on flex engine vehicles to 12 percent.
The government is making every effort to promote electric and hybrid vehicles, which is why the government is aiming to make the country completely free from petrol and diesel vehicles.
Toyota Hybrid Car: The price of this car may be less
If this proposal of Union Minister Nitin Gadkari is approved, then the price of hybrid cars sold in the country may fall. The price of hybrid model of Toyota Innova Hycross starts from Rs 25 lakh 97 thousand (ex-showroom, Delhi) which goes up to Rs 30 lakh 98 thousand (ex-showroom, Delhi).
According to the report of Cartoq, the on-road price of the top hybrid model of this Toyota car is Rs 35 lakh 50 thousand. This price includes ex-showroom price, RTO charge, GST (State and Centre), Insurance and CESS.
The ex-showroom price of the vehicle includes 28 percent GST along with 15 percent CESS. If these things are removed then the ex-factory cost of Innova Hycross Hybrid is only Rs 21 lakh 50 thousand.
If Nitin Gadkari’s proposal sent to the Finance Ministry is approved, there may be a huge decline in car prices. If this happens, the ex-showroom price of the top variant may see a drop of up to Rs 5.50 lakh. A huge difference of Rs 7 to 10 lakh can be seen in the on-road price in different states of the country.
If there is a decline in the GST rate of hybrid vehicles, then all the hybrid models sold in the Indian market will become cheaper. Apart from Hycross, Toyota also has a hybrid model of Hyrider. Apart from Toyota, Maruti Suzuki also has hybrid models of vehicles like Grand Vitara and Invicto available.
Flex Vehicles: These companies are working on flex engines
According to reports, vehicle manufacturing companies like TVS Motor, Bajaj Auto and Hero MotoCorp are also planning to make vehicles with flex engines.