Tata Motors Has Reportedly Voiced Opposition to Tax Concessions for Hybrid Vehicles

Tata Motors, a prominent electric car manufacturer in India, is actively advocating against potential tax reductions for hybrid vehicles in the country. The company asserts that hybrids pose greater environmental harm compared to pure electric vehicles (EVs). This stands in contrast to the position of other automakers, such as Toyota, which are pushing for lower taxes on hybrids, according to a report by Reuters.

As part of Prime Minister Narendra Modi’s initiative to address pollution, India has been promoting electric vehicles with a low tax rate of 5 percent. In contrast, hybrid cars face a significantly higher tax rate of 43 percent, just below the 48 percent levied on traditional petrol cars.

In a letter addressed to the government, Tata Motors emphasises the need to incentivise EVs over hybrids, citing the latter’s higher pollution levels. The company argues that providing tax cuts for hybrid vehicles would run counter to the government’s overall environmental objectives.

This development occurs amid a global shift towards sustainable transportation, with automakers increasingly focusing on electric and hybrid technologies. Tata Motors’ position not only aligns with its commitment to electric mobility but also signals a potential divergence in regulatory approaches within the Indian automotive market. As the government deliberates on hybrid taxation, the industry and environmental advocates will closely monitor the outcome, anticipating its impact on the adoption of electric and hybrid vehicles in the country.