 "India’s Car Tax Clash: Electric vs. Hybrid in Green Revolution")
India plans to maintain a five percent tax on electric cars while keeping a high tax of 48 percent on hybrid vehicles for the foreseeable future, according to G20 Sherpa Amitabh Kant. Major car manufacturers like Maruti Suzuki and Toyota have called for lower taxes on hybrids, arguing that electric vehicles alone cannot reduce emissions effectively. Meanwhile, companies such as Tata Motors and Hyundai emphasize a commitment to fully electric vehicles for true decarbonization. The Indian government is also focusing on expanding EV charging infrastructure and promoting renewable energy production. A recent Uttar Pradesh order to waive registration taxes on hybrid cars has sparked debate among automakers about supporting either hybrid or electric vehicle technologies in the long run.
India’s G20 Sherpa Amitabh Kant has confirmed that the country will maintain its current tax structure for electric and hybrid vehicles for the foreseeable future. In a recent panel discussion, he stated that electric cars will continue to be taxed at a favorable rate of five percent, while hybrid cars will face a significantly higher tax rate of 48 percent.
Major automakers, including Maruti Suzuki and Toyota, have been advocating for lower taxes on hybrid vehicles. They argue that reducing the tax burden on hybrids would help achieve emissions reduction goals, especially since electric vehicles alone cannot meet all the demands of decarbonizing India’s roads. In contrast, companies like Tata Motors and Hyundai emphasize that a full transition to electric vehicles is essential.
Kant highlighted India’s commitment to enhancing battery manufacturing and increasing the electrification of transportation. As part of this effort, the government is expanding charging infrastructure and implementing supportive policies, such as the Faster Adoption and Manufacturing of Electric Vehicles scheme.
He also noted that renewable energy would power all electric vehicles, aligning with India’s broader goal to achieve carbon neutrality by 2070. The recent order by Uttar Pradesh waiving registration fees for hybrid cars has sparked debate among automakers, with some supporting it as a way to promote all green technologies while others argue it could hinder the growth of the electric vehicle segment.
As the Market continues to evolve, the government remains focused on promoting greener technologies in the automotive industry.
Tags: India, electric vehicles, hybrid cars, GST, Amitabh Kant, car manufacturers, renewable energy, automotive industry climate policy, carbon neutrality.
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What is the new tax rate for hybrid cars?
The new tax rate for hybrid cars is 48%. -
How much tax will electric cars have?
Electric cars will have a tax rate of 5%. -
How long will these tax rates last?
These tax rates are expected to continue for a long time. -
Why is there a higher tax on hybrid cars?
The higher tax on hybrid cars encourages more people to choose fully electric vehicles. - Will these taxes change in the future?
It is not clear if the taxes will change, but they are planned to stay for a long time.
