Despite Increased GST Rates Volvo Cars Will Continue To Push For Hybrids
1 mins read
Published on July 12, 2017
- Volvo disappointed with the high GST rate on hybrid vehicles in India
- From 2019 all new Volvo models will have an electric motor
- Hybrid vehicles now come under that 28% GST slab plus 15% cess
Swedish auto manufacturer Volvo Cars today said it will continue to push for hybrid and electric vehicles in India despite disappointing high tax rate on such vehicles under GST. The company -- which had last week announced that from 2019 all its new models will have an electric motor, putting an end to cars that only have an internal combustion engine (ICE) -- also said it would try to bring such new vehicles to India as soon as possible after global launches.
"Yes, I am bit disappointed with the high GST rate on hybrid vehicles as it is not in line with the government's push for environment friendly vehicles," Volvo Auto India Managing Director Tom von Bonsdorff told PTI.
Under the new tax regime, hybrid vehicles are on the same slab as luxury cars at 28 per cent GST plus 15 per cent cess at present. At 43 per cent, total tax incidence on these vehicles is higher from the previous effective tax rate of 30.3 per cent. "This does not change our commitment to eco-friendly vehicles and to develop hybrid and electric vehicles. We, however, hope that the government will have a rethink on the tax rates on hybrids in order make them more affordable," he said. When asked if Volvo Cars will launch hybrid or electric vehicles in India, in line with the global announcement from 2019, Bonsdorff said, "We will try to bring them as soon as possible in India after the global launch".
Volvo Cars had announced that it would launch five fully electric cars between 2019 and 2021, three of which will be Volvo models and two high performance electrified cars from the stable of its performance car arm, Polestar. All these five cars will be supplemented by a range of petrol and diesel plug in hybrid and mild hybrid 48 volt options on all models, the company had stated. Expressing optimism on electric cars, Bonsdorff said: "The government's plans to have an all-electric car fleet by 2030 goes in hand with Volvo Cars' global vision. We are looking forward to that direction".
The company already sells its plug-in hybrid SUV XC90 Excellence in India priced at Rs. 1.28 crore. Volvo Auto India today launched an all-new version of its crossover model V90 Cross Country priced at Rs. 60 lakh (ex-showroom). The model is powered by a twin-turbo diesel engine that delivers power of 235 hp coupled with an 8-Speed gearbox with paddle shifts.
It is also equipped with radar-based safety features such as lane keeping-aid, collision warning with full auto-braking for pedestrians, cyclists, other vehicles and large animals. The new vehicle also has blind-spot detection with cross traffic alert; rear collision warning and park pilot assist features. "The car has remarkable off-road performance, on-road comfort and luxury. It is designed for Indian road conditions and is in sync with the new-age luxury customer's lifestyle of seeking a weekend escape," Bonsdorff said.
Great Deals on Used CarsView All Used Cars
- 57,276 km
- 63,670 km
- 25,000 km
- 29,884 km
- 49,000 km
- 16,600 km
- 50,252 km
- 70,457 km
- 44,000 km
- 39,692 km
-15770 second ago
-12347 second ago
-11675 second ago
-11671 second ago
-10505 second ago
The manufacturer also said that it would hike the prices of its commercial vehicle range
-6227 second ago
The motorcycle is powered by a 457 cc parallel-twin engine that churns out 47 bhp of max power
-4688 second ago
36 minutes ago
51 minutes ago
The carmaker said that rising input costs necessitated the revision in pricing.
1 hour ago
1 month ago
The standard price of the XC40 Recharge stands at Rs 56.90 lakh, and with the festive discount applied, the cost is reduced to Rs 55.12 lakh (ex-showroom)
1 month ago
It will begin following this model with its Mini brand in three countries- Italy, Poland and Sweden
2 months ago
First units of the electric SUV-coupe have been delivered in Kerala and Tamil Nadu.
3 months ago
This is the second electric-SUV from the Swedish automaker’s portfolio to be sold in India and it is offered with a 78 kWh battery pack offering a claimed range of up to 530 kilometres.
4 months ago
In the first six months of 2023, four prominent names in India’s luxury car space cumulatively sold over 19,000 vehicles, with the top two brands reporting their best half-yearly figures yet.