Tax breaks for hybrid vehicles are opposed by Tata Motors: Report

Tata Motors has requested that EVs be given more incentives than hybrids in a letter to the federal government.

Leading electric car maker in India, Tata Motors, is aggressively campaigning against proposed tax breaks for hybrid cars in the nation, claiming that hybrids are more ecologically damaging than all-electric cars (EVs). According to Reuters, Tata Motors’ position is in opposition to other automakers’ calls for lower taxes on hybrid vehicles, such as Toyota.

With a low tax rate of just 5%, India has been aggressively pushing electric vehicles as part of Prime Minister Narendra Modi’s effort to reduce pollution. Hybrid vehicles, on the other hand, pay a tax rate of 43 percent, which is little higher than the 48 percent imposed on conventional gasoline-powered vehicles.


Citing the hybrids’ higher pollution levels, Tata Motors argues in a letter to the government that EVs should be given more incentives than hybrids. The corporation argues that tax reduction for hybrid car assistance would be detrimental to the government’s overall environmental objectives.

This advancement coincides with a larger worldwide trend in which automakers are putting more of an emphasis on electric and hybrid vehicles. Tata Motors’ stance not only reflects its dedication to electric vehicles but also paves the way for possible differences in regulatory strategies within the Indian auto industry. Environmentalists and the automotive industry will be keenly observing the government’s decision about hybrid taxes and awaiting word on how it would affect the nation’s uptake of electric and hybrid vehicles.

Leave a Reply

Your email address will not be published. Required fields are marked *