Hybrid Vehicles May Not See Additional Cess Hike Anant Geete

Union Heavy Industries Minister Anant G. Geete said that hybrid vehicles that are made in India may not go for any price revision and the hike in additional cess will be largely on premium models powered by internal combustion engines. He also said that the government is drawing up plans to reduce the prices of Lithium ion batteries which power electric vehicles.

“Whatever the additional compensation we have to give to certain states we have to decide on revised cess rates (on cars) accordingly. The Finance Minister is working out the modalities and will try to address the concerns raised by premium carmakers over the rise in cess on luxury vehicles.  Hybrid vehicles that are made in India may not see any additional cess hike,” Geete told reporters on the sidelines of SIAM annual convention.

Geete called India’s automobile industry as the primary contributor to Prime Minister Narendra Modi’s `Make in India’ initiative. He assured the industry of all help from the government as the “guardian of India’s automobile sector”. Besides, he also dispelled apprehensions on GST and its impact on automotive industry and called for making India as a global hub for automobile industry.

“I assure you that it is the duty of the government to offer all help to the industry in this regard,” he further added.

Commending the auto sector, Geete said: “Global automobile industry has set up giant manufacturing plants in India. They not only manufacture vehicle for us but also export to other countries globally. Even the Euro VI emission cars are being manufactured and exported globally. At the same time, we have to change with the changing times and adapt to newer technology within the country also.”


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