Higher taxation under GST to blame.
The Mahindra Scorpio facelift scheduled to arrive before the end of 2017 will lose out on mild hybrid tech introduced in July 2016. Dr Pawan Goenka, MD of Mahindra & Mahindra auto sector, has said the company would come out with a non-hybrid version of the Scorpio, in a conference call with reporters.
Under the current GST structure, hybrids and mild hybrids have been placed in the highest tax slab, which means they attract 43% taxation, same as luxury cars. Without tax benefits, the manufacturer will have to pass the extra cost of the mild hybrid setup on to the customer. According to Goenka, the Government's decision to tax hybrids at 43% seems firm and final, which means Mahindra isn't too keen on hybrids for the Indian market. The company will continue development of hybrid tech for export markets, however.
Dr Goenka isn't the first to be unhappy over the Government's decision to place hybrids in the same slab as luxury cars. Mr Rakesh Srivastava, Director - Sales and Marketing, HMIL has also expressed his disappointment over the decision in the past, and so has Mr Vikram Kirloskar, vice chairman, Toyota Kirloskar Motor.
Mahindra is currently working on a facelifted version of the Scorpio slated for launch before the end of 2017. The upcoming 2017 model is expected with cosmetic updates to the nose along with new upholstery for the cabin. A 7-inch touchscreen from the XUV500 with Android Auto, EcoSense and Connected Apps could also make it to the facelift. Along with cosmetic updates, the 2.2 L mHawk diesel will witness a 20 HP jump in power to output 140 HP, and upgrade to the 6-speed automatic gearbox from Aisin, it was earlier reported.
