Lower taxes on hybrid cars can speed up India’s EV adoption: Honda

The total tax incidence on hybrid vehicles in the country is 43 per cent, which is inclusive of GST, while battery electric vehicles attract a tax of about 5 per cent.
Lower taxes on hybrid cars can speed up India’s EV adoption: Honda
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NEW DELHI: Lowering taxes on hybrid vehicles can lead to faster adoption of electric vehicles in the country, according to a senior official of Honda Cars India Ltd (HCIL).

The automaker noted that hybrid technology is currently best suited for Indian conditions as it is not dependent on external charging infrastructure.

The total tax incidence on hybrid vehicles in the country is 43 per cent, which is inclusive of GST, while battery electric vehicles attract a tax of about 5 per cent.

“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,” Honda Cars India Ltd (HCIL) VVP (Marketing and Sales) Kunal Behl said.

He said: “We believe if they (government) can reduce it, the adoption of the electric vehicles would be very fast.” Behl noted that hybrid vehicles could help in the transition to electric vehicles fully

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