Union Minister Nitin Gadkari suggests slashing GST on hybrid vehicles from 48% to 12%, potentially reducing the Toyota Innova HyCross’s price by Rs 5.5 lakh and promoting the adoption of eco-friendly transportation options. Other hybrid models like the Grand Vitara and Honda City Hybrid are also expected to witness substantial price reductions.
Hybrids To be Cheaper Soon: All Details!
Union Minister for Road Transport and Highways, Nitin Gadkari, has proposed a substantial tax reduction on hybrid vehicles, potentially benefitting popular models like the Toyota Innova HyCross. He suggested that slashing the current 48 percent GST on hybrid vehicles to 12 percent, which could lead to significant cost savings for buyers.
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The Toyota Innova HyCross, ever since its launch has taken the country by storm because of how spacious, and premium it feels garnering lots of attention in the market. Toyota offers a hybrid version of the MPV, with prices ranging from Rs 25.97 to Rs 30.98 Lakh ex-showroom. Toyota re-opened the bookings of the top-end ZX(O) Hybrid variant and at the moment, its on-road price of Rs 35.87 Lakh, inclusive of all charges and taxes. However, excluding 28% GST and 15% CESS, the ex-factory cost of the top trim Hybrid lands at Rs 21.8 Lakh.
Gadkari’s proposal to reduce GST to 12% could significantly impact the car’s pricing. With this adjustment, the ex-showroom cost would be around Rs 25.8 Lakh, including 15% CESS and 12% GST. This reduction translates to a significant difference, making the car approximately Rs 5.5 Lakh Cheaper. Moreover, this price drop would reflect in the on-road price as well, potentially resulting in savings of around Rs. 7 to Rs. 10 Lakh, depending on the City of Purchase. Additionally, other hybrid models like the Grand Vitara, Toyota HyRyder, and Honda City Hybrid are also expected to witness price reductions.
For instance, the top-end Alpha Plus DT Hybrid variant of the Grand Vitara, currently priced at Rs 20.09 Lakh ex-showroom, and with the proposed GST reduction, the price would get reduced by almost Rs 5.5 Lakh. Similarly, other models like the Toyota Hyryder and Honda City Hybrid would also benefit from lower taxes, resulting in significant savings for buyers.
Overall, Gadkari’s proposal aims to incentivize the adoption of hybrid vehicles and promote eco-friendly transportation options in the country.
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