Popular Japanese automaker Toyota is pushing for Hybrid cars instead of EVs, The company pushes for Hybrid Cars
In an era where the world is collectively transitioning towards more environmentally friendly choices, the surge of electric vehicles (EVs) and hybrid cars has been particularly noteworthy. India is experiencing a swift transformation in the automobile landscape with numerous incentives and policies aimed at promoting the adoption of EVs. However, the same level of enthusiasm does not extend to hybrid vehicles, which currently face tax rates almost on par with their petrol-powered counterparts.
Toyota, a pioneering force in the hybrid car segment is fervently advocating for a change in this scenario. The company is actively engaged in lobbying the Indian government to reduce taxes on hybrid cars. In this article, we explore Toyota’s stance on hybrid cars and the push for more favourable taxation policies.
The Hybrid Push
Toyota Motors is leading the charge to persuade the Indian government to reduce taxes on hybrid vehicles. The company is seeking a substantial tax reduction of 21% which is one-fifth lower than the prevailing tax rate. Toyota’s argument is based on the premise that hybrid cars should be entitled to tax incentives due to their significantly lower environmental impact compared to conventional petrol-powered vehicles.
This argument gains validity when considering the relatively minor tax difference between petrol vehicles (48%) and hybrid vehicles (43%). Given the environmental benefits that hybrids bring, this disparity appears rather modest.
Toyota’s Advocacy for Hybrid Cars
To advance its case, Vikram Gulati, the Country Head of Toyota India, has dispatched a letter to Niti Aayog, a key government policymaking body in India. In this letter, Toyota is advocating for an 11 percentage point reduction in taxes for hybrid vehicles and a 14-point decrease for flex-fuel hybrids. If implemented, these changes would result in a tax rate of 37% for hybrid vehicles and 34% for flex-fuel hybrids. Additionally, Toyota is also urging the government to extend incentives to hybrid cars on aspects such as road taxes, akin to the incentives currently offered to EV buyers.
While neither the government nor Niti Aayog has officially commented on this letter, Toyota has emphasized that a harmonious blend of EVs and hybrids is the path forward for India. The company’s stance is grounded in the belief that embracing both EVs and hybrid vehicles will contribute significantly to the nation’s efforts to curtail pollution and reduce its carbon footprint. Toyota’s efforts in lobbying for reduced taxes on hybrid cars underscore its commitment to sustainable and environmentally responsible mobility solutions.
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