Efforts to reduce GST rates on hybrid vehicles could disrupt the industry and weaken government efforts to meet net-zero targets, a senior official at Tata Motors, the country’s leading electric vehicle maker, warned on Wednesday. . .
Shailesh Chandra, managing director of passenger cars and electric vehicles at Tata Motors, emphasized that hybrid cars essentially function as gasoline cars, using small battery packs and motors that rely heavily on fossil fuel engines. He argued that hybrid cars do not meet the key goals of achieving net zero carbon, improving air quality and reducing dependence on fossil fuel imports.
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These concerns come as the Department for Promotion of Industry and Intra-Industry Trade (DPIIT) and the Ministry of Heavy Industries seek agreement from the auto industry on the possible rationalization of taxes on hybrid passenger vehicles.
Chandra dismissed the concept of providing incentives for hybrid vehicles, calling it a “misguided effort” by some original equipment manufacturers (OEMs). He said fossil fuel-based technologies such as gasoline direct injection (GDI) and compressed natural gas (CNG) can contribute to increased fuel efficiency without the need for additional incentives, and that the existing benefits of hybrid vehicles will It was emphasized that the reduction would be 2%. Abolition of hybrid cars.
India levies Goods and Services Tax (GST) of 28% on hybrid cars and 5% on EVs.
The Indian arm of Japanese automakers Toyota Motor Corporation and Suzuki Motor Corporation, world leaders in hybrid technology but slow to adopt fully electric vehicle technology, are lobbying the government to rationalize the goods and services tax (GST). When it comes to hybrid cars, the industry is once again divided into two factions. Domestic manufacturers Tata Motors, Mahindra & Mahindra, and South Korean automakers Hyundai and Kia will participate on one side, while Japanese automakers Toyota, Suzuki and Honda will participate on the other.
Ever since Tata Motors announced its focus on electric vehicles (EVs), it has consistently expressed opposition to hybrid vehicles. Similarly, South Korean automaker Hyundai has shown reluctance to support hybrid tax breaks.
Shailesh Chandra said, “Even if hybrids are given some benefit, it will only disrupt the entire investment profile of all OEMs and take them away from their main focus of ultimately moving to zero-emissions technology.” “It will be,” he emphasized.
He said seeking incentives for hybrid technology is a challenge, especially if it is primarily being adopted to comply with Corporate Average Fuel Economy (CAFE) standards or stricter emissions regulations by certain original equipment manufacturers (OEMs). emphasized that it lacks justification. “We have a lot of leeway when it comes to meeting CAFE requirements, so we don’t have to think about hybrids at all,” he said.
When asked about Tata Motors’ stance on other technologies such as flex-fuel vehicles and ethanol-fueled vehicles, Chandra said the company is still considering these options. However, he expressed skepticism about promoting technologies that do not face challenges related to ecosystem and technology costs. “Support should be directed to where technology and infrastructure challenges exist and where technologies such as electric vehicles (EVs) are addressing critical issues,” Chandra said. Only zero-emission technologies should be electrified,” he stressed.
Tata Motors expects EV sales to increase by 40% in 2024 compared to 69,000 units a year ago. This growth will be driven by his three new products based on acti.ev, the company’s first pure electric architecture. The recently launched Punch EV is an electric version of the popular micro SUV Punch, priced from Rs 1.1 million. Tata Motors plans to bring several ‘second generation’ products on the acti.ev platform, including Curvv, Harrier, Altroz and Sierra EV. This will be followed by a premium EV based on the ‘3rd generation’ premium electric platform Avinya developed on a common platform shared between Tata Motors and UK-based luxury car manufacturer Jaguar Land Rover. line will be released.