India’s electric vehicle (EV) dream may be hitting a detour. Uttar Pradesh, a major car market, just waived registration fees for strong hybrids and plug-in vehicles, potentially derailing the all-electric push.
Currently, only five strong hybrid models exist, mostly from Maruti Suzuki and Toyota. These hybrid cars use a combination of electric motors and combustion engines, adapting to driving conditions. Unlike mild hybrids, whose electric motors only assist the engine, strong hybrids can run solely on electricity at low speeds. Plug-in hybrids go a step further, with the electric motor as the primary power source and the engine kicking in later.
So, are hybrid cars taking over? Sales data suggests yes. Hybrid sales are growing faster than EVs, narrowing the gap. Experts predict a 38% jump in hybrid sales, capturing 2.1% of the market. EVs, on the other hand, might see a slight decline.
This trend could strengthen if other states follow Uttar Pradesh’s lead. Additionally, a potential GST cut on hybrids could solidify their dominance.
The debate heats up: is hybrid the smoother transition from gasoline cars? Or should the government prioritize pure EVs? Car manufacturers are divided.
Tata, Mahindra, and Hyundai oppose hybrid incentives, pushing for pure EV support. Maruti Suzuki, Toyota, and Honda fight for hybrid tax breaks. Currently, EVs enjoy a low 5% tax, while hybrids face a hefty 43%.
The fear? Hybrid tax cuts could lure potential EV buyers, further hindering EV adoption. In India, EVs make up a mere 2% of car sales, compared to China’s impressive 38%. A hybrid tax cut could also hurt petrol and diesel car sales, impacting companies focused solely on EVs.
Companies, primarily Toyota and Maruti Suzuki, see hybrids as a crucial bridge technology. With India’s slow-growing charging infrastructure, hybrids offer a practical solution.
The debate rages on. Will India prioritize a full-fledged EV revolution or embrace hybrids as a stepping stone? Only time will tell.
Reference- Economic Times Article, InsideEVs, The Verge, Autocar India, The Drive