Small hybrid cars may arrive within two years as Maruti, Toyota, Hyundai, Renault prepare launches
About six compact hybrid models, mostly under 4 metres, could reach India, with a lower GST rate of 18% possibly applying to them.
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Big news may be on the way for small-car buyers in India within the next two years. Companies such as Maruti Suzuki, Toyota, Hyundai and Renault are reported to be preparing affordable hybrid cars. About six new compact hybrid models could arrive in India, most of them shorter than 4 metres.
These cars will have an electric motor along with a petrol engine, so the emphasis is likely to be on fuel savings and lower emissions.
The biggest relief may come on the tax front. Under the new GST regime, small hybrid cars that meet the prescribed length and engine capacity conditions may attract 18% GST. Under the earlier regime, such vehicles were taxed at 43%. This could give manufacturers a chance to offer hybrid technology at a relatively lower price. However, what the final criteria turn out to be will ultimately matter.
At present, hybrid vehicles from Maruti Suzuki, Toyota, Hyundai, Honda and Kia in India generally cost more than Rs 15 lakh. They are also often longer than 4.3 metres.
Maruti Suzuki may develop its own series hybrid technology and use it in popular models such as the Fronx, Baleno, Swift or Brezza. In this system, the petrol engine mainly generates electricity and the electric motor drives the wheels, which sets it apart from the common parallel hybrid system. The first car based on this technology is expected in 2027. The company has also mentioned a range-extender concept called REEV Light, which could offer external charging.
If the series hybrid system comes to the Maruti Fronx, it could also be offered in the Toyota Urban Cruiser Taisor. The possibility is being discussed because of the partnership between the two companies and their use of common platforms.
Hyundai could bring a small hybrid car around 2027. The next-generation Creta is also likely to get a strong hybrid system, but no firm announcement has been made on this model yet.
Renault's compact SUV based on the Bridger concept could arrive by the end of 2027, and it too is likely to get a hybrid powertrain.
The CAFE 3 norms, effective from April 1, 2027, will add to the need for companies to move towards low-emission vehicles. The market for affordable hybrid cars could therefore expand in the coming period.
