Honda has just unveiled the new Elevate SUV. The new Elevate is based on the same platform as the Honda City and uses the City’s 1.5-litre petrol engine as well. However, Honda has not offered the strong hybrid powertrain of the City with the Elevate. Instead, Honda is directly planning to launch an electric vehicle based on the Elevate within a three-year timeline.
Why didn’t Honda offer a hybrid with the Elevate?
Honda is currently focusing on electric vehicles for the future. Hence, the Elevate will spawn an all-new electric SUV rather than go for an hybrid option as an in-betweener.
The second reason could be the cost factor. Apart from the market competition, a hybrid powertrain costs significantly higher than a non-hybrid unit. Not to mention, there is competition from other manufacturers who sell diesel engine also as an option.
Tax rate on ICE, hybrid and EV
One more important consideration is the tax bracket on new cars. For ICE vehicles, the Goods and Services Tax (GST) is 45 percent. For all-electric vehicles, it is 5 percent while hybrids are charged 43 percent GST. Hence, from a viability perspective, the hybrids lose out as compared with battery electric vehicles.
Competition to the new Honda Elevate
Honda has a tough fight ahead. The Elevate is likely to face competition from fully-loaded sub 4m SUVs as well as rivals like the Hyundai Creta and the Kia Seltos. Further, Maruti’s Grand Vitara and Toyota’s Hyryder offer a hybrid powertrain as a distinguishing factor.
Honda offer the new Elevate SUV with a 1.5-litre petrol engine from the Honda City. This motor develops 121 PS and 145 Nm. Customers will be able to choose from a 6-speed manual or a CVT automatic gearbox. There is no diesel or hybrid engine on offer.
Also Read – 2023 Honda Elevate SUV makes Global Debut in India.