Mint Explainer: Petrol-run cars are losing buyers, but diesel SUVs aren’t. Why?
However, with hybrid cars costing more than their diesel counterparts and offering no tax advantage over diesel vehicles, scaling up their adoption has become difficult. Under the pre-goods and services tax (GST)-cut tax structure, large diesel SUVs attracted a total tax of 50%, while hybrids were taxed at 43%. Since the September 2025 GST cut, however, both hybrids and large diesel SUVs have been subject to a 40% tax rate.
