Low taxes will boost adoption of EVs in India

A senior official of Honda Cars India Ltd (HCIL) told that reducing taxes on hybrid vehicles can eventually boost the adoption of electric vehicles in India. He further stated that currently, hybrid technology is best suited for Indian conditions as it does not rely on external charging infrastructure. At present, the total tax charged on hybrid vehicles is 43 percent, which is inclusive of GST, whereas tax charged on Electric vehicles stands at about 5 percent.

Vice-President (Marketing and Sales) of Honda Cars India Ltd (HCIL) Kunal Behl stated,'' There is a big gap (in taxes). 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. We believe if they (government) can reduce it, the adoption of the electric vehicles would be very fast.''

The Japanese automobile manufacturer believes that currently, hybrids are the best option for India as customers do not have to face range anxiety issues, and also there are no limitations on the performance of the vehicle as well. Vikas Behl further stated, ''According to us in the current scenario there is nothing better than this (hybrid).. it is the best solution right now.”