Tata Motors Requests Government not to reduce Tax on Hybrid Cars, Toyota suffers Jolt

Tata Motors, one of the largest automobile companies, has requested the central government not to give tax exemption on hybrid cars. Toyota, the leading company in the hybrid car segment, had demanded a reduction in tax on hybrid vehicles. Tata Motors has presence in both the internal combustion engine (ICE) and electric vehicles (EV) segments.

A Reuters report states that Tata Motors says that taxes on hybrid cars should not be reduced as they spread more pollution than EVs. Hybrid cars that use a petrol engine and an electric motor with an electric battery pack are taxed at 43 percent in the country. In comparison, cars with petrol engines are taxed at 48 percent. Under the Goods and Services Tax (GST), EV But five percent tax is applicable.

Toyota has a major share in the international market for hybrid cars. It entered this segment in the country with the Prius. Japan’s Toyota claims that hybrid cars have lower carbon emissions than petrol engine cars. At the end of last year, the Trade Promotion and Industry Ministry requested the Heavy Industries Ministry to balance the cess on hybrid cars. However, Tata Motors is against it. In the last few years, the demand for hybrid cars has increased in the country. Due to this, many automobile companies like Maruti Suzuki and Honda have launched their models in this segment.

This report says that Tata Motors has held a meeting with government officials on this issue. Along with this, the company has written a letter to the Trade Promotion and Industry Ministry saying that the air quality in the cities of the country is poor. Giving incentives to hybrid cars will not be in the interest of both the environment and the economy. In the country Electric cars Tata Motors ranks first in the segment. It believes that EV is a better solution to tackle air pollution and reduce dependence on crude oil imports. Earlier, the company had also opposed giving tax exemption to American EV maker Tesla on import of electric cars.