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The facelifted Scorpio could miss out on mild-hybrid technology due to the higher taxation on hybrid vehicles under the Goods and Service Tax (GST).
The company's managing director, Pawan Goenka, stated that the higher tax rate has put a few automakers future hybrid vehicle strategy in a state of flux.
"We will soon be coming out with a non-hybrid version of the Scorpio... Demand for hybrid vehicles will have to be reassessed. Hybrids may even get phased out," said Goenka in a conference call with reporters. Mahindra will continue to develop hybrid technology but primarily for export.
"We have individually approached the government to reconsider the tax on hybrids, but it certainly seems that the decision is firm and final. I am not expecting any rethink [on the higher tax rate for hybrids] in the short term," Goenka added.
Hybrid vehicles attract a rate of 28 percent and an additional 15 percent cess, taking the total to 43 percent under GST – that’s the same as a luxury car.