Government of India’s new tax structure, Goods and Service Tax (GST) will come into effect from 1st July 2017. It will result in the price of hike of certain segment of cars. Surprisingly, one of them is the hybrid segment.
Yes. For reasons unknown, the GST will not be acting in favour of hybrid cars, which are widely touted as cleaner and much efficient as compared to conventional cars.
GST for hybrid cars will be at 43%, as against the cess of 12% which is applied under the current tax structure. This will result in BMW i8 price in India to be increased by a staggering INR 45 lakh. Yes, BMW India is disappointed, and will review the future of i8 in India.
Price of the Honda Accord Hybrid will be increased by about INR 10 lakh post GST. The worst affected is Maruti Suzuki. Their Ciaz and Ertiga models, which account for over 10,000 unit of monthly sales, are only sold as hybrids in the diesel variant – prices of which will be increased by INR 1.5 lakh from 1st July 2017.
In the past few months, NGT has been the flag bearer for making Indian cities pollution free. They have been quite vocal about the same – remember the diesel engine ban? But this time, when the taxes on hybrid cars have been increased, they have not done much.
Priced from INR 2.25 crore, ex-showroom Delhi, BMW i8 is one of the most advanced car on sale in the country. It is powered by a hybrid powertrain, petrol engine powers the rear wheels while electric motor drives the front wheels. Peak power dished out to the wheels via the seamless 8 speed transmission stands at 228 hp while peak torque stands at 320 Nm. This translates into a top speed of 250 kmph, and a 0-100 kmph acceleration time of under 4 seconds. Read our detailed BMW i8 Review.