- Small hybrid cars from Maruti, Toyota, Hyundai and Renault likely to arrive in India in next 2 years.
- Series hybrid technology can be found in the Maruti Franks, Baleno, Swift and Brezza.
- 18% GST is likely to apply to eligible small hybrid cars, but the final criteria will be important.
The next 2 years may bring big news for small car buyers in India. Companies like Maruti Suzuki, Toyota, Hyundai and Renault are reportedly gearing up to launch affordable hybrid cars. As many as 6 new compact hybrid models may enter India. The length of these trains will mainly be less than 4 meters. The use of an electric motor alongside a petrol engine is likely to emphasize fuel economy and lower emissions.
Tax relief on small hybrid cars
As per the new GST structure, 18% GST may be applicable on small hybrid cars that meet certain length and engine capacity criteria. In the previous structure, 43% tax was applicable on such vehicles. Therefore, companies can get an opportunity to offer hybrid technology at a relatively low cost. Currently, hybrid cars from Maruti Suzuki, Toyota, Hyundai, Honda and Kia in India generally cost more than ₹15 lakh and are often over 4.3 meters in length.
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Maruti Suzuki’s Franks, Look at Baleno and Swift
Maruti Suzuki may develop its own series hybrid technology and use it in popular models like Franks, Baleno, Swift or Brezza. In this system, the petrol engine mainly generates electricity, while the electric motor drives the wheels. So it is different from normal parallel hybrid system. The first car based on this technology is expected to arrive in 2027. The company also mentioned a range-extender concept called REEV Light; It may have external charging facility.
Toyota, Hyundai and Renault are also preparing?
If the Maruti Franks gets a series hybrid system, it could also be offered in the Toyota Urban Cruiser Tisser. The possibility has been discussed due to the partnership between the two companies and the use of the same platform. While Hyundai may introduce a small hybrid car around 2027, the next-gen Creta is likely to get a strong hybrid system. But there is no definite announcement about this model yet.
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A compact SUV based on the Renault Bridger concept could arrive by the end of 2027 and is likely to get a hybrid powertrain as well. CAFE 3 regulations, which will come into effect from April 1, 2027, will increase the need for companies to switch to low-emission vehicles. Hence, the market for affordable hybrid cars may expand in the coming years.