Challenging Maruti Suzuki and Toyota, who have been advocating for incentives for hybrids, Tata Motors stated on Wednesday that such benefits would be “regressive and a waste of government money,” potentially “slowing down the pace of EV adoption” in the country and rendering the vehicles uncompetitive globally.
“You can’t mislead the country. From a technological standpoint, incentivizing hybrids represents a step backward and makes us less competitive on the global stage. Do you want to hinder progress in zero-emission technology? Is that the direction we should be heading?” Shailesh Chandra, MD of Tata Motors for passenger automobiles and electric vehicles, made a statement in response to calls for hybrid incentive programs from businesses such as Maruti, Toyota, and Honda.
Tata unveiled the Curvv EV on Wednesday; it will soon be available in petrol and diesel versions, with an entry price of Rs 17.5 lakh (ex-showroom).
According to Chandra, businesses need to follow CAFÉ regulations. “To meet the net zero emissions target for every company and the country, you have to have a razor-sharp focus, which is a movement towards EVs,” he said, describing hybrids “as a technology that only makes internal combustion engine (ICE) vehicles achieve better fuel efficiency but not zero emissions.”
The central government has implemented a subsidized 5% GST rate for electric vehicles while imposing a higher GST rate of over 44% on petrol, diesel, hybrid, and other larger vehicles.
Companies advocating for hybrid incentives, particularly Japanese automakers (with Maruti being majority-owned by Japan’s Suzuki), argue that hybrids help reduce CO2 emissions compared to conventional cars and offer better fuel efficiency. Recently, the Uttar Pradesh government responded to these requests by eliminating registration taxes on hybrids.
Chandra remarked that hybrid technology, which has been around for over two decades, is used by some carmakers only because they are not yet ready with electric vehicles and need to meet fleet emission standards.
“Why would someone want to return the nation to something outdated and ephemeral? He continued, “We should not be wasting government money for this.” “Players who are under pressure to meet the CAFÉ mandates and are also late in introducing EVs are pursuing hybrids,” he stated.
He added that because there is strong consumer demand for hybrid cars, automakers that sell them make substantial profits and do not require government assistance. Conversely, EV manufacturers are encouraging customers by lowering their profit margins and helping to establish the necessary infrastructure.
“I am not making a profit from electric vehicles, yet I am working to achieve price parity by sacrificing my margins to advance zero-emissions technology. In contrast, companies making a profit from hybrids are still seeking government support.”
He emphasized that hybrids should not be equated with electric vehicles. “The fact that hybrids use a motor and a small battery to achieve better fuel efficiency than traditional internal combustion engines does not make them as clean as electric vehicles.”