Await a policy framework on hybrid, other green fuel tech: Maruti chairman | Auto

EVs in India are charged just five per cent Goods and Services Tax (GST), but hybrid cars are charged 28 per cent GST. The divide within the auto industry recently came to the fore after a July 5 order by the Uttar Pradesh (UP) government to waive a registration tax of 8-10 per cent for strong hybrid vehicles.

In MSIL’s annual report released on Sunday, Bhargava mentioned: “Some believe that your company has been slow to manufacture electric vehicles. We decided to adopt a more diversified approach to meeting national objectives and did not want to put all our eggs in one basket. The government has also accepted that in India there is a need to use different technologies.”

“Some states, like UP, have already taken steps in this direction. We now await a policy framework that would lead to the promotion of all technologies that result in petrol and diesel cars being replaced by cars using other technologies,” he noted.

MSIL currently sells two strong hybrid cars in India—the Grand Vitara and the Invicto. It is planning to launch its first EV in the next few months. By 2030-31, MSIL plans to launch a total of six EVs.

A major national objective for the car industry is to reduce carbon and greenhouse gas emissions and the dependence on imported fuel. MSIL has decided that considering India’s economic and social environment and the availability of resources within the country, the best strategy would be to offer customers cars with different technologies at different price levels, Bhargava noted.

The rapid expansion of EV acceptance is dependent on the reduction of their costs and the pace of establishment of charging infrastructure. “This has to largely come from localisation of production and better technology,” he stated.

“It is also clear that pure petrol and diesel cars are the worst in terms of carbon and greenhouse gas emissions and fuel consumption. Therefore, while electric car use increases, customers should be encouraged to buy cars using strong hybrid technology, or CNG, or ethanol and biogas. Pure petrol and diesel car use should be minimised. Hybrid cars improve fuel efficiency by about 35 per cent to 45 per cent and help reduce carbon and greenhouse gas emissions by 25 per cent to 35 per cent,” he explained.

CNG cars are not as clean as hybrids but are better than petrol or diesel cars and also do not use oil. “India has a very large potential for developing biogas from agricultural, animal, and human waste. Biogas is completely renewable, has no import content, and is overall carbon negative. Production of biogas would also lead to important benefits for the environment. For example, the burning of paddy stubble could be substantially reduced, and cleanliness levels increased,” he noted.

MSIL has started work on a trial basis to produce biogas. “We look forward to government policies that would result in the rapid development of this fuel. We are also working on modifying car engines to use petrol blended with 20 per cent ethanol. Technology exists to enable cars to use higher amounts of ethanol,” he explained.

First Published: Aug 04 2024 | 2:42 PM IST