JSW MG Motor asks government to reduce GST on plug-in hybrid cars
JSW MG Motor has requested the Centre to reduce goods and services tax (GST) on plug-in hybrid cars, which currently stands at 28 per cent. This is because it is the right "transition" technology till a full electric vehicle (EV) charging infrastructure is developed across India, its chief executive officer (CEO) Emeritus Rajeev Chaba told Business Standard on Friday.
“While talking to top government officials, we have been indicating that plug-in hybrid is the right technology for this country. It is a bridging or transition solution till EV infrastructure gets developed. Ultimately, we need to talk to the Society of Indian Automobile Manufacturers (Siam) also. And, we need to align the players, because there are definitely differences of opinion (within automakers),” he stated.
On July 5 last year, the Uttar Pradesh government issued an order removing registration tax on strong hybrid cars. This led to a tussle within the automobile industry.
Tata Motors, Hyundai Motor India, Kia India, and Mahindra & Mahindra strongly opposed the July 5 order, arguing that the nascent electric car industry in UP, one of India's largest car markets, needs complete focus and support.
On the other hand, Maruti Suzuki, Toyota Kirloskar Motor (TKM) and Honda Cars supported the order. They argued that incentives should be extended to all green technologies, including plug-in and strong hybrids, as they can help the state reduce carbon emissions more quickly. The UP government did not change its decision.
