Maruti Suzuki has dropped the plan to launch the S-Cross Hybrid in India. The primary reason for this is the Government’s decision to deny incentives to hybrid vehicles in the GST structure. Compared to the electric vehicles, hybrid vehicles are being taxed at much higher rate under GST. And this has lowered the overall sale of hybrid vehicles during the GST era. The Maruti Suzuki was expected to launch the fully hybrid variant of the premium crossover by the next year. Now the reports are receiving that they are re-thinking the plan to use Smart Hybrid technology used in models like Ciaz, S-Cross and Ertiga.
Maruti Suzuki is not the only automotive manufacture that has been facing the same problem. The Japanese company Toyota faced a major decline in sales of its hybrid Camry after the implementation of GST in the country. Maruti Suzuki has already signed partnership with Toyota to develop electric powertrain technology focusing on pure electric models instead of hybrid or mild-hybrid technology equipped cars. Maruti Suzuki has already announced that their first pure electric car developed with the corporation of Toyota will hit on roads in the year 2020. Apart from Maruti Suzuki, The Mahindra also decide to stop the production of hybrid or mild-hybrid cars in the country in future.