High Tax Rates on Hybrid Cars to Remain, Says Amitabh Kant

India will maintain a 48% tax on hybrid cars and a 5% tax on electric vehicles (EVs) for a long time, according to G20 Sherpa Amitabh Kant. Despite demands from major car manufacturers like Maruti Suzuki and Toyota to lower taxes on hybrids, the government remains committed to promoting electrification. Hybrid cars currently face a GST rate of 28%, but additional taxes push the effective rate to 48%. Kant emphasized that India’s policy aims to boost battery manufacturing and support full electrification of mobility to achieve carbon neutrality by 2070. While Japanese automakers argue that hybrids are essential for reducing emissions, companies like Tata Motors and Hyundai believe EVs are the key to decarbonizing India's roads.

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