Auto majors in our country are repeatedly asking the government to bring hybrid technology based vehicles under the taxation policy of all-electric vehicles. It would benefit them with a reduction of 31% tax. At present, under the cess listing of GST, hybrid vehicles are levied at 43% and all-electric vehicles are levied only 12%.
The Automotive Component Manufacturers Association of India President Rattan Kapur shared his concern over the complete change in the technological outlook of our country and called it to be fatal if the existing conventional technologies are done away with. According to him, it will bring heavy losses to the industry and the hybrid technology should thus be supported by the government just like the electric vehicles under FAME scheme.
"We should encourage the hybrid technologies to coexist with the pure electric as it allows the conventional technologies to evolve with the new. We would like to believe that the high rate on the hybrids is merely a matter of oversight and would be rectified to make it at par with that of the electric vehicles. I strongly urge the government through Girish Shankar Secretary Department of Heavy Industry to kindly take it up with the concerned authorities" Kapur said.
