[AnkitShroff]

What I feel is that hybrids should be taxed somewhere in between ICE and EVs (say 28% without cess; the current tax rate of 43% is a stone-throw distance from the tax on ICE vehicles). Listing my reasons below:

- From govt's perspective, there are primarily two objectives - to move towards net-zero emission and to reduce import of crude oil. Particularly for someone with high running (>10k kms per year), it helps the objectives if policies move someone from ICE to EVs/ hybrids. Given the limited infrastructure and absence of charging facilities in majority of societies (especially Tier 2/3 cities), Hybrids remain the only option between the two for many. With the current taxation (along with OEMs' greed resulting from the oligopolistic market for hybrid cars), the break-even for offsetting the initial price difference with ICE vehicles (not withstanding the interest element on the higher payment upfront, potential expenses due to battery/ complex engineering) is impractical for many; a lot of people are therefore sticking to ICE vehicles resulting in a higher crude import

- 5% GST on EVs was to facilitate minimizing the initial cost difference between ICE and EV vehicles to promote the latter, and get into the cycle where more EVs on the road meant lower R&D cost per vehicle, resulting in further lowering of BEV cost, hence more BEV vehicles and so on. However, with the steep discounting on EVs (recent price cuts on Tata EVs, XUV400, MG ZS in the beginning of the year, Merc EQS etc.), it is apparent that the lowered GST rate was resulting in the OEMs milking the profit instead of BEVs being democratized as a result of lower price. A lower tax on Hybrids will hopefully put pressure on the EV manufacturers to lower the price further, and thereby will be a step towards the two objectives of the government

[ferrarirules]

Originally Posted by DicKy

Super bad at maths but here goes. Have taken the onroad pricing of the Hyryder S and Hyryder S hybrid. They have a difference of 3.43 lakhs in Kerala for on road pricing. Have taken the petrol price as Rs.108/ltr. The average mileage as 13.25km/l for the non hybrid and 21.5km/l for the hybrid. Mileage figures taken Autocarindia test figures. So would have to run 1.10 lakh kms to recover the extra cost of the hybrid.

I took the numbers from the Hyryder official brochure. So you are saying the number claimed in the brochure are not correct. I thought such things were limited to EVs only where the false range was being claimed.