Honda Cars India believes lower tax on hybrid cars will accelerate EV adoption

Lowering of taxes on hybrid electric vehicles can lead to faster adoption of electric vehicles in the country, Honda Cars India's Vice-President (Marketing and Sales) Kunal Behl told PTI. He noted that hybrid technology is currently best suited for Indian conditions as it is not dependent on external charging infrastructure. At present, the total tax incidence on hybrid vehicles in the country is 43 per cent inclusive of GST while battery electric vehicles attract a tax of about 5 per cent.

Behl noted that there is a big gap in taxes of the two types of vehicles. "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," he said.

He further emphasized that hybrid vehicles could help in faster 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," Behl said.

Backing the hybrid technology, Honda said 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. The company recently launched its popular City sedan as a Hybrid model.

The company plans to ultimately transition to full battery electric vehicles as per the global vision of its Japan-based parent company. Globally, the brand plans to launch 30 EV models by 2030, with an annual production volume of more than 20 lakh units. The auto major aims to invest around $40 billion over the next 10 years in the EV space.

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