Union Minister of Commerce and Industry Piyush Goyal said he was against hybrid vehicles. But now he seems to have a change of mind with the plug-in hybrid vehicle’s ability to reduce carbon emissions and address range anxiety.
“I was always anti-hybrid. When I studied the model of plug-in hybrids where we can have the first 100 km on petrol, it takes care of range anxiety and helps cut down petrol consumption by 90-95%,” Goyal said while speaking at an event organized by CNBC TV-18.
“When I assessed my own vehicle’s distance traveled, I could see only 1-2 days in a year when I travel more than 100 km in a car.” The minister said this while urging the industry to transition to electric vehicles from traditional petrol and diesel vehicles.
The minister’s comments come at a time when the automobile industry is witnessing a slowdown in the sales of electric vehicles and hybrid-powered vehicles are picking up. Major hybrid car makers Toyota Kirloskar and Maruti Suzuki are also pushing the government to reduce the tax on hybrid vehicles.
There are primarily three types of hybrid vehicles – mild hybrid, strong hybrid, and plug-in hybrid. The plug-in hybrids, unlike the other two versions, have a larger battery and can be plugged into an external power source to recharge.
While sales of mild and full hybrid vehicles are picking up in the country, plug-in hybrid vehicles are yet to see significant traction in the market. There are no plug-in hybrid models available in the mass car market.
Recently, the Uttar Pradesh government removed the road tax on strong hybrid cars, making such cars cheaper by around 10%, while there were media reports on the Karnataka government also considering cutting tax on hybrid vehicles.
Meanwhile, Goyal noted that the government remains focused on driving sustainability and government schemes have been fuelling electric vehicle adoption in the country.
“I have been monitoring the cost differential between the electric and ICE vehicles. Today, on a total cost of ownership, it just does not make sense to buy anything but an electric vehicle. It is the right time,” Goyal added.
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