Maruti Suzuki is gearing up to introduce a groundbreaking technology in its upcoming cars like the Swift, Fronx, and Baleno. This new series hybrid technology could be a game-changer for several reasons, especially when it comes to pricing and efficiency.
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So, what’s unique about these series hybrid vehicles? Well, they’re often called range-extenders or self-charging electric vehicles. They work much like electric cars, where an electric motor powers the wheels. The twist here is that you don’t need to plug them in for charging. Instead, they have on-board generators that use a petrol engine to recharge the battery. The crucial point is that the petrol engine doesn’t directly drive the wheels.
Now, the interesting part is the tax benefits. According to the Department of Revenue, an electric vehicle that runs solely on electrical energy or batteries qualifies for a lower GST bracket of 5 percent. Even the Central Motor Vehicles Rules define an electric vehicle as one powered exclusively by an electric motor and a traction battery. Notably, there’s no mention of considering tailpipe emissions.
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This technicality could mean that Maruti’s upcoming range-extender cars might be classified as electric vehicles, making them eligible for the lower GST slab. This potential tax advantage could give Maruti a significant edge in pricing compared to other traditional cars in the market, including strong-hybrid models.