‘Low taxes on hybrid cars can help faster adoption of EVs’

Lowering taxes on hybrid vehicles can lead to faster adoption of electric vehicles in the country, according to a senior official of Honda Cars India Ltd (HCIL).

The automaker noted that hybrid technology is currently best suited for Indian conditions as it is not dependent on external charging infrastructure.

The total tax incidence on hybrid vehicles in the country is 43 per cent, which is inclusive of GST, while battery electric vehicles attract a tax of about 5 per cent.

“There is a big gap (in taxes). So, yes it would be a welcome step if the government could support us (by reducing tax on hybrid vehicles as well) …We request the government if they could consider it,” Honda Cars India Ltd (HCIL) Vice-President (Marketing and Sales) Kunal Behl told PTI.

He further said: “We believe if they (government) can reduce it, the adoption of the electric vehicles would be very fast.”

Behl noted that hybrid vehicles could help in the transition to fully electric vehicles while at the same time helping in cutting down vehicular emissions and fossil fuel consumption.

“We really respect the government’s understanding that they want to bring down the emission levels…They want to reduce the consumption of fuels, so both these objectives are met by the hybrid vehicles. So, I am sure there could possibly be a thought which goes in the government into relooking into favourable conditions where customers can adapt to such technologies faster,” he stated.

Honda believes that hybrids are the best solution for the country as buyers do not encounter range anxiety issues and there are no curbs on the performance of the vehicle as well, Behl noted.

“According to us in the current scenario there is nothing better than this (hybrid).. It is the best solution right now,” he added.

The company, which has forayed into the mainstream hybrid segment with the introduction of City e:HEV, plans to ultimately transition to full battery electric vehicles as per the global vision of its Japan-based parent company.

Honda globally plans to launch 30 EV models by 2030, with an annual production volume of more than 20 lakh units.