Union Minister Nitin Gadkari is one of those individuals who frequently make headlines for their innovative ideas. In a recent interview, he vowed to eliminate over 36 crore petrol and diesel vehicles entirely, stating that while challenging, it is not impossible for India. Just a few weeks prior to this statement, the minister expressed his intent to reduce the GST for hybrid cars sold in India. Mr. Gadkari proposed reducing the current 48 percent GST on hybrid vehicles to 12 percent. This reduction could significantly impact the prices of popular hybrid cars like the Toyota Innova Hycross in the market.
The Toyota Innova Hycross, launched recently, has garnered significant attention from buyers, following in the footsteps of its predecessors, the Innova and Innova Crysta. Toyota offers a robust hybrid version of this MPV, priced between Rs 25.72 lakh and Rs 30.698 lakh (ex-showroom). A regular petrol engine version of the Innova Hycross is also available in the market for a lower price.
For our discussion, we are focusing on the top-end hybrid variant of the Innova Hycross. Currently, purchasing the top-end ZX(O) Hybrid Innova Hycross will cost you Rs 35.5 lakh on the road. This price includes the ex-showroom price, RTO charges, insurance, CESS, and GST for both state and center.
In the present situation, the ex-showroom price incorporates a 28 percent GST (both state and center) along with a 15 percent CESS. Excluding these components, the ex-factory cost of the Innova Hycross Hybrid is only Rs 21.5 lakh.
A reduction in the GST on hybrid cars to 12 percent would impact the car’s overall price. Following this GST reduction, the ex-showroom price of the Innova Hycross Hybrid would be approximately Rs 25.5 lakh, inclusive of 15 percent CESS and 12 percent GST.
This reduction will result in a substantial price decrease for this vehicle. If you compare, the ex-showroom price will be approximately Rs 5.5 lakh lower than the current price. With the revised tax amount, there will also be a reduction in the on-road price of the vehicle. Depending on your city of residence, you can expect a difference of around Rs 7-10 lakh in the on-road price of the vehicle.
While we are already talking about Innova Hycross’s price reduction, let’s see how this GST reduction would reflect in the pricing of other strong hybrid models like Grand Vitara, Toyota HyRyder, and Honda City Hybrid.
The top-end Alpha Plus DT Hybrid variant of the Grand Vitara costs Rs 20.09 lakh ex-showroom. This price includes 28 percent GST and 15 percent CESS. If the GST is reduced to 12 percent, the ex-showroom price of the car would also decrease. The ex-factory cost of the Grand Vitara will be around Rs 11.45 lakh. If you include 12 percent GST and 15 percent CESS, the new ex-showroom price would be Rs 14.54 lakh, a difference of almost Rs 5.5 lakh.
The Toyota Hyryder, which is priced similarly to the Grand Vitara, will also experience a comparable price reduction. We can anticipate a price decrease of Rs 5-6 lakh. The final car discussed in this article is the Honda City Hybrid. The top-end ZX CVT hybrid variant of the City is priced at Rs 20.39 lakh ex-showroom, which is more expensive than the Grand Vitara.
After reducing the 28 percent GST and CESS, the ex-factory price of the City Hybrid is Rs 14.37 lakh. If you add the 12 percent GST and 15 percent CESS, the amount would be around Rs 18.25 lakh. Even then, there is a considerable difference in ex-showroom pricing, which will also be reflected in the on-road price.
The post Toyota Innova HyCross Hybrid To Get 5.5 lakh Cheaper After Nitin Gadkari’s Tax Cut Plan: Details first appeared on Cartoq.
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