Mercedes Benz India flags tax hurdle in EV journey
Mercedes Benz India Ltd (MBIL) on Thursday ruled out the possibility of introducing a plug-in hybrid in its Indian portfolio any time soon because of the current tax regime.
While the GST on electric vehicles (EVs) has been slashed to 5 per cent from 12 per cent, the GST on hybrids is still 28 per cent along with a cess of 15 per cent on the larger models.
While launching its first electric vehicle in India — the EQC — on Thursday, MBIL managing director Martin Schwenk said: “Mercedes Benz globally has the mission of attaining 50 per cent of its global sales from plug-in hybrids and EVs as part of its Ambition 2039 programme.”
On when India would have a plug-in hybrid in its portfolio, Schwenk said: “There are a number of hybrids in the global portfolio but there is not such a strong case for plug-in hybrids for India. Here we are stressing on battery-operated electric vehicles partly because of the tax regime.”
The EQC will retail in India for Rs 99.3 lakh for the first 50 units after which the company has hinted at a price rise.
Automobile dealers’ body Fada on Thursday said passenger vehicle retail sales in September witnessed a year-on-year increase of 9.81 per cent to 1,95,665 units amid a shift in customer preference for personal mobility over public transport.