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Plans for Ioniq and hybrid tech for new Verna and Creta cancelled after GST.

Hybrid cars fall under the highest rate of taxation under the Goods and Service Tax (GST). Hyundai’s earlier plans of introducing hybrid vehicles here have now been shelved. The Ioniq hybrid, which would have debuted at the 2018 Auto Expo will now not make its way here. The New Verna will also not feature mild hybrid technology.

Y K Koo, managing director and CEO, Hyundai Motor India said, “We had a plan to introduce mild hybrid technology for the next-generation Verna. But we have cancelled this project as the government has withdrawn benefits to hybrids after the GST roll-out. The benefits towards mild hybrid and strong hybrid vehicles are continuously decreasing,” Koo said.

The move, which puts a blanket ban on mild hybrid as well as full hybrid technology, despite the latter delivering significant fuel efficiency benefits and emission reductions, has not sat well with auto manufacturers.

The Creta facelift, due in late 2018 could miss out on mild hybrid technology as well. Under GST, hybrid vehicles attract 28 percent tax and an additional 15 percent cess, taking the tax to 43 percent, that’s the same as a luxury car.

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