Chennai:
If the reports from the top sources of the South Korean automobile giant Hyundai are to be believed, Hyundai 's subsidiary here may cancel its plans to introduce hybrid vehicles in India, and instead has started focusing on electric vehicles.
A senior official cited lack of government support behind the decision.
Hyundai has cancelled plans to showcase the Ioniq at the auto expo next year.
It might be recalled that earlier this year the Hyundai Motors India Ltd (HMIL) had announced its plans to launch its hybrid model Ioniq at the Auto Expo 2018, besides unveiling mild-hybrid compact cars and SUVs.
"There is no support for hybrid...I think we might postpone and cancel hybrid products in Indian market," HMIL Managing Director & CEO YK Koo told reporters here.
Under the GST regime, hybrid vehicles have been taxed the same as big petrol and diesel luxury cars attracting 28 per cent rate with a cess of 15 per cent while the tax incidence on hybrid vehicles have gone up to 43 per cent from the previous effective tax rate of 30.3 per cent. Meanwhile the government has hinted that it would not review the new rate.
Stating that the focus for HMIL is now on electric vehicles, Koo said a plan is already under consideration on which electric vehicles models are to be brought, and not hybrids, to India.
"We have electric and hybrid. We have all kinds of technologies. So, we are planning to consider electric vehicles. We have cancelled Ioniq showcase, which was to happen during the next year's auto show." Koo said.
In the earlier tax system, hybrid vehicles had attracted excise duty of 12.5 per cent, similar to entry-level small cars such as Tata Nano or Maruti Alto.
The company on Friday unveiled its all-new mid-sized sedan Verna, which is slated to be launched later this month in the domestic market.
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