Maruti Suzuki currently sells Ciaz SHVS and Ertiga SHVs that draw a 43% total tax incidence under new tax system
Maruti Suzuki is one of the few automakers present in India that sells hybrid powertrain enabled cars here. The company retails two mild hybrid cars Ciaz SHVS and Ertiga SHVS in India. After GST rolled out in the country on 1st July, hybrid cars have been slapped with a 43% high total tax incidence that made the hybrid vehicles much pricier compared to pre-GST era. The Ciaz SHVS and Ertiga SHVS are not different. But, the automaker says it will continue selling these models despite the high tax rate.
Both the Maruti Suzuki Ciaz SHVS sedan the Ertiga SHVS MPV are now pricier by up to Rs. 1 lakh compared to their pre-GST pricing. This means, sells of these models could decline due to the high pricing. But, the Indo-Japanese car manufacturer says it will stay committed towards producing environment friendly vehicles.
Maruti’s decision to continue with hybrid cars come right after another Indian auto giant Mahindra & Mahindra’s announcement to stop launch of hybrid cars in future, until the tax rate comes down. The hybrid cars are now taxed with the same rate of the luxury cars. Also, they are slapped with 15% cess over and above the 28% GST. Comparatively, these cars used to be taxed at 30.30% during the pre-GST period. This means the tax rate has increased by around 13%.
While GST Council announced the tax slabs, several automakers that sell hybrid vehicles in the country, expressed their concern regarding the high tax rate. This decision comes as a very self-contradictory one as the government is pushing forward to introduce green mobility across the country by 2032. However, despite appeals from the automakers the GST council has made sure that the tax rate for hybrid vehicles is firm and final.
Now, with Maruti Suzuki has confirmed it won’6t stop selling SHVS technology enabled cars, we expect the upcoming facelift version of the Maruti Suzuki Ciaz sedan to carry the same eco-friendly technology in the diesel powered model. The sedan is likely to get a 1.5-litre in-house developed DDiS diesel engine instead of the current Fiat-sourced 1.3-litre unit.
Maruti Suzuki Ciaz SHVS Gallery