Maruti Suzuki is accused of falsely using the SHVS technology as hybrid technology to import parts at a cheaper cost.
The directorate of revenue intelligence (DRI) and customs authorities have served a Rs 71 crore show-cause notice over its Smart Hybrid tech. This is releated to the investigation that has been going on since 2019. As per the authorities, Maruti Suzuki's mild-hybrid system is not compliant to qualify for lower custom duties as other hybrid technologies enjoy.
This is with respect to the 2017 ruling that offers special custom duty exemtion for technical parts used to build hybrid cars. These cars are defined as vehicles using both internal combustion engine and a battery-powered electric motor to run the vehicle on move.
As per the investigative agencies, the alternator-generator leveraged in Maruti Suzuki's older SHVS technology is not compliant under this category. The SHVS technology only offers start-stop functionality while being stationary. However, it is not confirmed whether the second generation SHVS system fitted with 1.5 litre petrol engines are also disputed as Maruti Suzuki claims that the new units also offer brake energy recuperation and torque-fill.
As per the authorities, Maruti Suzuki has flasely claimed benefits by importing a simple alternatior as a hybrid vehicle component after doing a few software tweaks. India's largest automaker is also facing an another Rs 70 crore notice in this regard. However, an official notice is not served yet.
Maruti Suzuki offers the SHVS technology in Ciaz, XL6, Ertiga, Vitara Brezza, and S-Cross.