By reducing the tax rate on hybrid vehicles, the popularity of electric vehicles (EVs) can be increased rapidly in the country. Honda Cars India Ltd. (HCIL) Vice President (Marketing & Sales) Kunal Bahl has expressed this opinion. Bahl said the hybrid technology is currently best suited for Indian conditions as it is not dependent on external charging systems.
Hybrid vehicles in the country have a total tax burden of 43 per cent including GST. Whereas, electric vehicles with batteries attract a tax of five percent. “There is a huge difference in taxes. In such a situation, if the government supports us and reduces the tax on hybrid vehicles, then it will be a welcome step. We request the government to do so.”
“We are confident that if they (government) can reduce this, people will move to electric vehicles faster,” he said. Along with this, it will also help in reducing the pollution caused by vehicles.
“The government wants to reduce the level of pollution, we really respect that. Also, they want to reduce fuel consumption. Both these goals can be achieved with hybrid vehicles. There is no restriction on the performance of the vehicles.
“In the current scenario, according to us, there is nothing better than this (hybrid)…it is the best option right now,” he said. The company has recently forayed into the hybrid segment with the City e:HEV. Honda plans to launch 30 electric models globally by 2030. The company aims to produce 20 lakh units annually by that time.
The company plans to invest $40 billion in the electric vehicle segment over the next 10 years. Bahl said, “The global trend is towards electric vehicles.. We believe that Indian customers really want to be a part of electric travel.. It matches our journey towards reducing pollution… if taxes are reduced.” If it is done, I am sure people will adopt it fast.”