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Kia India on Thursday said that it was working on CNG and other alternative powertrains for the Indian market and will launch at appropriate time, adding that the government should also reduce taxes including GST on passenger vehicles because 65 per cent of the cost of vehicles goes into taxes which a customer has to bear.
“We are studying on different powertrain options – hybrid, CNG, flex fuel – in our R&D centre. We will disclose at appropriate time. Even though CNG is growing and hybrids are growing, their percentage is not much…we have to think about the engines that we can acquire accordingly,” Joonsu Cho, Chief Sales Officer, Kia India, said here.
Talking about high tax regime , Hardeep Singh Brar, Senior Vice President, Sales and Marketing, Kia India said that cars are more expensive in India than anywhere in the world because of higher taxes.
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“We have GST of 48 per cent on almost all cars…almost 65 per cent of the cost of a car goes into taxes, hence rationalisation of tax is much required. As you see the average growth rate of the car industry is about five per cent and GDP growth is much higher than that…which is why while India is considered to be relatively cheaper country when we look at all the commodities across the bucket that we have. But, the moment when you start comparing the car prices with the rest of the world, we are higher than them,” Brar told businessline.
According to sources, the GST on old and used electric vehicles (EVs) is also likely to be raised while the proposal for lowering the rate on parts/components is expected to be rejected again.
One proposal was to lower GST on the sale of old and used EV to 5 per cent from 12 per cent. In order to boost EVs, 5 per cent GST is levied on new EV. However, input parts and services which are used for repair or maintenance of all second-hand vehicles attract 18 per cent GST. The GST Council meeting is scheduled on Saturday at Jaisalmer in Rajasthan.
Meanwhile, the company unveiled its sub-four meter SUV Syros which will be powered by a 1.0-liter turbo petrol engine with 88.3 kW (120PS)/172Nm and 1.5-liter CRDi diesel engine with 85 kW (116PS)/ 250Nm. Bookings will start from January 3 and deliveries will start from February.
The compact and mid SUVs market is estimated to sell around 14-lakh units this year, which is expected to grow at 15-16 lakh units next year. With the launch of Syros, Kia India is eyeing for a market share of 20 per cent next year, from around 15 per cent this year in these segments, Brar added.
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Published on December 19, 2024
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