The excise rate for hybrid cars has been cut from 24 percent to 14 percent in India, giving Honda, Toyota and Mahindra & Mahindra access to the Indian car market. With cars in India going for as low as $2,500, hybrid cars needed some sort of tax savings to compete in the tough market.
The tax cut goes into effect on April 1, 2008. It's not expected to have a huge affect in the immediate future, but more of a long term one as the government wants to encourage more fuel efficient options for emissions control.
Mahindra & Mahindra (M&M) will introduce hybrid versions of Scorpio and Bolero by June. Honda will be importing the Civic Hybrid, while Toyota is expected to import the Prius.
"Excise duty cut would encourage manufacturers to bring in environment-friendly cars with advanced technology," said Honda Siel India president and CEO M Takedagawa.
Source: News & Features - Hybrid cars get government nod - Business Standard Motoring
Monday, March 03, 2008
India Cuts Import Duty on Hybrid Cars
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