Three Ways India Could See A Rise In The Price Of Hybrids

Maruti Grand Vitara: To avoid going through the hybrid stage entirely, battery electric vehicles (BEVs) have been the main focus of India’s automotive electrification drive. Nonetheless, in recent years, international manufacturers like Honda, Toyota, and even Maruti—whose technology is derived from Suzuki—have debuted hybrid vehicles in India.

These versions, which come with both electric and gasoline propulsion, are far more expensive than their combustion-engined equivalents. For instance, the price difference between the Maruti Grand Vitara’s petrol and hybrid versions is currently about Rs 3 lakh, but the hybrid model comes with a few more goodies. The premium for the hybrid version of the Honda City car can well surpass Rs 4 lakh.

The absence of government incentives in India has prevented other automakers from investigating hybrid powertrain solutions. However given that hybrids are more popular and preferred over pure-EV counterparts due to their lower operating expenses and somewhat lower initial cost, this powertrain technology may become more accessible in the future. Three possible outcomes are as follows:

Lower Taxes

The Indian government, as previously stated, has not been providing any incentives for strong-hybrid powertrain technology, preferring to concentrate on pure electric vehicle technologies. But according to a recent report, Nitin Gadkari, the Minister of Road Transport and Highways (MoRTH), said that the tax on hybrid cars should be lowered from the present 48 percent GST to 12 percent GST. As opposed to this, EVs are subject to a 5% GST levy.

If implemented, this modification might significantly lower the premium of a hybrid vehicle over a gasoline vehicle, but it would also need the consent of other ministries.

Reduced Material Expenses

According to one of the primary cost models that project EVs’ growing affordability, raw material costs would decrease as EV adoption and demand increase and associated technologies become more efficient. cheaper battery costs should also result in cheaper prices for hybrid models, as the battery pack is one of the most expensive parts of a hybrid. A rise in hybrid vehicle sales may also contribute to a decrease in the price of the metals and minerals used to make battery packs.

Discounted Offers

While reducing taxes will undoubtedly contribute to hybrid car prices falling, additional financial incentives in the form of discounts may be necessary. To further encourage consumers of new cars to select environmentally friendly choices, these rebates may come from the government or even the car manufacturer. This can include further savings when trading in an outdated gasoline or diesel vehicle for a hybrid one.

These are a few key ways that the most fuel-efficient hybrid cars may see price reductions in the upcoming years. As of right now, the Maruti Grand Vitara, Honda City eHEV, and Toyota Hyryder are the only mass-market strong hybrid vehicles available in India.

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