India needs govt support to shift to electric vehicles, says Tata Motors

India needs the government's support to shift to electric mobility, said Tata Motors Chief Financial Officer P B Balaji. Speaking about Tata Motors' approach towards zero-emission and clean battery-powered electric mobility, Balaji reportedly said that first, the government needs to make clear which clean powertrain technology it intends to support to meet its zero-emission goals.

Reuters reported that Balaji's comment comes at a time when Tata Motors recently cleared its stance that the government should focus on supporting electric mobility and should not reduce tax on hybrid vehicles, despite several automakers advocating for the reduction of GST on hybrid vehicles claiming that these vehicles are less polluting than petrol only or diesel only vehicles, as they come equipped with battery-powered range extender system.

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Stating Tata Motors' stance on cleaner powertrain technology solutions, Balaji said that the automakers can't invest in all technologies. "The government, as part of its commitment towards zero-emission economy, needs to be very clear in terms of where they are going to put their money," Tata Motors' CFO said in response to a question seeking the OEM's position if the government were to lower import taxes on hybrid cars.

Currently, the Indian government taxes electric vehicles at five per cent, while the rate of tax on hybrid vehicles is as high as 43 per cent, just below the 48 per cent imposed on petrol-only cars. Several automakers that have been making hybrid vehicles have been advocating for lowered taxes on those vehicles claiming that they emit less pollutants into the environment compared to petrol-only or diesel-only vehicles.

The Indian trade ministry has backed calls by some Japanese carmakers to reduce taxes on hybrids, but Tata Motors urged the government officials to not take such a step. Speaking about the government's stance, Balaji said that there should not be a subsidy for a transient technology like hybrid powertrains.