EV race: Are hybrid vehicles getting in the faster lane?

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Key Points

Currently, electric vehicles (EVs) in India are taxed at only 5%, whereas hybrids are taxed as high as 43%, just below the 48% tax imposed on petrol cars..

India's top electric car maker Tata Motors urged the government not to cut taxes on hybrid cars as they are more polluting than pure electrics, countering calls from Toyota for lower levies, Reuters had reported in January...

The company has met officials and written to the trade department, saying the country faces an urban air quality crisis with health implications, and hybrids should not be incentivised as they are already taxed lower than gasoline cars, ET had reported in January...

Auto manufacturers such as Toyota, and Maruti Suzuki which focus mainly on hybrid vehicles that run on both petrol and electric motors, are asking for a tax cut on hybrids..

As per the company, hybrid vehicles, despite being far less polluting in comparison to conventional ICE, do not get the apt policy treatment.In a letter to the governments think tank, Niti Aayog, Toyota's country head in India, Vikram Gulati, said that the tax differential over petrol cars should be as much as 11 percentage points for hybrids and 14 points for flex-hybrids..

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