[volkman10]

Finally better sense prevail!

Transport ministry wants lower GST on hybrid vehicles.

whether it comes down to 18% or is at par with electric vehicles, the idea is to incentivise the purchase of such automobiles.

The transport ministry has written to the finance ministry asking for the goods and services tax on hybrid vehicles to be reduced from 28%.

This comes after the GST Council, the apex decision-making body for the tax, slashed the rate for electric vehicles to 5% last month in a bid to boost cleaner sources of mobility.

While the government is still deciding on a roadmap for the transition to alternative fuels and electric vehicles, a reduction in GST for hybrid vehicles will provide some relief to automakers.

Link

[Palio_2005]

I agree with the transport ministry. Its a myopic approach by this government by trying to push only EV which is a long shot. Further EV just shift the place of pollution. Electricity in India is majorly thermal which has its own problems. Hybrids will help reduce the reliance on fossil fuels and also help in reducing pollution. China is betting heavily of hybrids and I see more and more of them on the roads during my visits. 2 wheeler are mostly electric. Electric bike sharing is coming up big time as well

[volkman10]

Hybrids Must Get Same Reduced GST Benefit As EV : Minister

The recommendation to reduce GST on hybrid cars will be a welcome move for manufacturers like Volvo, BMW, Toyota and even Maruti Suzuki, all of whom are looking to introduce hybrid vehicles into the market. This will also see other manufacturers changing their plans to include more hybrid vehicles in their portfolio.

Link

[padmrajravi]

Originally Posted by Palio_2005

Further EV just shift the place of pollution. Electricity in India is majorly thermal which has its own problems.

I have a slightly different view point there.EVs does not just shift the place of pollution. Rather they establish a greener channel of transmitting power. In the current scenario, power is generated at the point of use, ie the ICE engines. This is not a scalable model.

Imagine a future with only EVs . If at all, alternate energy generation mechanisms come, government can switch the power generation to greener one easily ,because they have unlimited capital and full control of energy generation. It would be far easier than migrating a whole lot of vehicles and going through transitions similar to current one.

[Thermodynamics]

Originally Posted by volkman10

Hybrids Must Get Same Reduced GST Benefit As EV

Appreciate it. At the same time, there should be checks and balances to avoid cheap tricksters like "mild-hybrid" qualify for subsidy.

[landcruiser123]

I agree with Mr. Gadkari as long as there is a minimum qualification criteria for Hybrids. They should be able to run on pure electricity in for at least 10-15 km and with a top speed of 25 kph.

And the government should set a review for this tax break at 5 years. And probably increase the tax rates progressively after 2025.

[Aditya]

Transport ministry wants lower GST on hybrid vehicles - Posts moved to a new thread.

[sumeethaldankar]

If the mild Hybrid is able to increase the fuel efficiency/performance of the vehicle by even 5% I do not see why it should not be consider under the GST for hybrid benefit, in the end the benefit goes to the customer. I hope the GST for hybrids decreases and the benefit passed to the consumer namely you and me.

[sgiitk]

Let us also accept in the odd-even days many car got the hybrid tag, which they should not have. So the user is also responsible. I hope proper sense prevails.

[dragracer567]

Originally Posted by Palio_2005

I agree with the transport ministry. Its a myopic approach by this government by trying to push only EV which is a long shot. Further EV just shift the place of pollution. Electricity in India is majorly thermal which has its own problems. Hybrids will help reduce the reliance on fossil fuels and also help in reducing pollution. China is betting heavily of hybrids and I see more and more of them on the roads during my visits. 2 wheeler are mostly electric. Electric bike sharing is coming up big time as well

The thing is, in order to meet the Paris 2050 goals, we need to go fully Electric coupled with major increases in renewable energy such as in Solar energy and Wind which we have actually been relatively successful at! China is actually betting heavily more on EVs than hybrids now and hopes to sell 35 million EVs by 2025 which is an insane target!

I know that we Indians love gradual change but it just won't work now! By the time our manufacturers master the tech for affordable hybrids, our market would be flooded by even cheaper Chinese electric cars thanks to their economies of scale and ability to mass produce to their massive car market. Already, most of the EV buses sold in India are built by BYD! Infact, if you go to Schiphol airport, the 'solar-powered' airside transport buses that they like to advertise about are built by BYD!

If we Indians can meet the insane targets on solar and wind energy and get international praise for it, we can do the shift to EVs as well! This is our chance to leapfrog and I really hope we don't miss the bus atleast this time!

[GeeTee TSI]

It is high time ARAI publishes emissions performance (g/km for example) and let the emissions decide the tax slab

[CarguyNish]

Looks like finally someone realized it.

Karnataka Chief Minister, BS Yediyurappa writes to FM to withdraw GST Cess on hybrid cars.

Karnataka has renewed efforts with the Centre to review imposition of GST cess on hybrid vehicles, which chief minister BS Yediyurappa has called steep, and said discourages investments in the fledgling sector.

The chief minister has written to finance minister Nirmala Sitharaman requesting her to slash the GST impost and promote eco-friendly EV vehicles. Yediyurappa's request to Sitharaman, who represents Karnataka in the Rajya Sabha, should be seen in the context of the problems Toyota Kirloskar Motor (TKM) is battling as the GST cess makes the price of its hybrid variant Camry very steep.

“The present difference of 43% and 5% GST for HEVs and EVs respectively is too wide, though HEVs are from the same family as EVs. The encouragement of HEVs by way of reduced GST will facilitate a greater presence of these vehicles in India,”

Last year, union transport minister Nitin Gadkari had written to the finance ministry to reduce the GST on hybrid vehicles, after the GST council decided to slash GST for electric vehicles to 5%.

Source

[TorqueIndia]

Interesting . Oh Karnataka okay the land of Toyota factories, now we know why they are making noise. By the way which car is the cheapest Hybrid in India ?

Is that Toyota Camry at 38Lakhs ?

[Turbanator]

This made sense in 2017, not going into 2021. What we now need is a push for full EV and the infrastructure for the sector.

Government should have a certain percentage of GST on the regular cars reserved for Electrification. They are coming up with new expressways like Delhi- Mumbai and Delhi-Amritsar, if government can create suitable chargers on the way, we can recover some of the lost years.

[CEF_Beasts]

I still believe at the moment hybrid is the way forward atleast in India till the proper infrastructure for EVs are built. The tax slab for hybrids should be in between IC engined cars and EVs, it is just too high at the moment.