Is India Focusing on Hybrids? Let’s Find Out

Recently, Nitin Gadkari, Minister of Road, Transport & Highways (MoRTH), stated that the GST rate on hybrid vehicles should be reduced from 48% to 12%. This was stated because hybrid vehicles are partially electrically operated; as a result, they produce fewer emissions than pure internal combustion engines. 

The MoRTH cabinet minister also emphasised that the Finance Minister should consider bringing up this proposal at the upcoming GST Council meeting. Once implemented, this would benefit the automotive industry, resulting in decreased imports, and more importantly, pollution levels would decline. In addition, it would also promote the sales of hybrid vehicles because they’ll command lesser premiums than they currently do. 

Now, apart from that, it is interesting to know that the Indian automotive industry is the highest contributor of GST to the Indian government. Further, India also outperformed Japan by securing the third position globally, as far as car sales are concerned. Above India, it is China and the USA. Speaking of which, Nitin Gadkari also firmly believes that India will secure a number one position as an automotive manufacturing zone.  

Closing Words cum Opinion

I think it would be a sensible transition from hybrid to electric vehicles for Indian buyers. The Indian government, however, should promote both fuel types, but, as of now, hybrid vehicles should be aggressively promoted. Currently, the majority of Indian buyers still prefer buying pure internal combustion engines. 

Two major factors come into play- some are enthusiasts, and some have a restricted budget for switching to an alternative fuel. Adaptability and feasibility can also be considered another factor, especially transitioning from pure combustion engines to pure EVs, because of unclear concepts, the infamous “range anxiety” of electric vehicles and the lack of EV-oriented infrastructure. 

That said, hybrid vehicle owners will understand the basic concepts, principles, and features of electrification because hybrid vehicles have more or less the same concepts and features as all-electric vehicles.