New Delhi: The push towards electric vehicles (EVs) in India is gaining momentum, with both domestic and international companies introducing various models to meet the growing demand. Among the key players in this space, Mahindra & Mahindra has strongly advocated for the adoption of electric mobility, deeming it essential for the country’s future. The Mumbai-based automotive giant has emphasized the need for increased government support in this transition to electric transportation.
Mahindra CEO Advocates for Stronger Focus on EVs
Rajesh Jejurikar, Executive Director and CEO of Mahindra & Mahindra (M&M), recently spoke about the company’s stance on electric vehicles and the need for greater government backing. During an interaction with PTI-Bhasha, Jejurikar highlighted that focusing on electric vehicles is crucial for India’s progress. He also expressed his belief that the government should continue to support this shift, especially in light of recent developments in Uttar Pradesh.
The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, recently announced a significant policy change that has sparked debate among automobile manufacturers. The state has decided to exempt hybrid vehicles, which use both fuel and electric power, from road tax. This move, aimed at encouraging the adoption of more eco-friendly vehicles, has garnered mixed reactions from the industry.
Concerns Among EV Manufacturers
The decision by the UP government to offer tax exemptions for hybrid vehicles has raised concerns among companies heavily invested in the electric mobility sector. These manufacturers fear that similar policies could be adopted by other states, potentially diluting the focus on fully electric vehicles. This concern stems from the belief that hybrid vehicles, while more efficient than traditional fuel-powered cars, still rely on fossil fuels and may not contribute as significantly to reducing carbon emissions.
Despite these concerns, Mahindra’s CEO remains optimistic about the future of electric vehicles in India. Jejurikar stated that with the right products and continued government support, the EV market could thrive and play a pivotal role in the country’s environmental and economic goals. He emphasized that electric mobility is a national priority and that Mahindra & Mahindra is fully committed to advancing this agenda.
The Taxation Debate: Hybrid vs. Electric Vehicles
One of the key points of contention in the push for electric mobility is the taxation policy for hybrid vehicles compared to fully electric vehicles. Hybrid vehicles are powered by a combination of an internal combustion engine and one or more electric motors, which utilize energy stored in a battery. However, the tax structure for these vehicles is currently much higher than that for pure electric vehicles.
In India, hybrid vehicles are subjected to a total tax rate of 43%, including Goods and Services Tax (GST), while fully electric vehicles are taxed at a much lower rate of approximately 5%. This significant difference in taxation has led to calls from hybrid vehicle manufacturers for tax parity with electric vehicles. They argue that reducing the tax burden on hybrid vehicles could encourage more consumers to adopt these environmentally friendlier options, thereby serving as a stepping stone towards full electrification.
Mahindra’s Vision for Electric Mobility
Mahindra & Mahindra has been at the forefront of promoting electric vehicles in India. The company has invested heavily in developing a range of EVs designed to cater to different segments of the market. By focusing on innovation and sustainability, Mahindra aims to contribute to reducing the nation’s carbon footprint while providing consumers with cutting-edge mobility solutions.
Jejurikar’s recent comments underscore Mahindra’s commitment to this vision. The company believes that with continued support from the government, the electric vehicle industry in India can achieve significant growth. This, in turn, would help India meet its environmental targets and reduce its dependence on fossil fuels.
