Hybrid cars are winning as range anxiety grips EVs

livemint.com:

Hybrid sales overshadowed electric cars in India in 2023. This is in spite of the fact that hybrids do not get tax concessions or incentives—unlike battery-operated cars. Is this just a blip or a definitive shift in consumer preference? What is driving it? Mint explains: In 2023, sale of hybrid cars touched an all-time high of 82,607 units.

This marked an over four-fold increase from under 20,000 units in 2022. In comparison, battery-operated electric car sales saw the tally nearly double to 81,710 units from round 41,675 units in 2022. This is the first time hybrid cars have outsold electric cars in one year.

This, despite the fact that currently hybrid cars attract a GST of 43%—two percentage points lower than large petrol or diesel cars. Electric cars attract a much lower 5% GST. Due to the higher taxes hybrids are more expensive than their nearest electric counterparts.

Even though there are only six hybrid models available in India, the launch of the Maruti Suzuki Grand Vitara and Invicto and the Toyota Hyryder and Innova Hycross have led to the expansion of the segment. With its better fuel economy, Maruti Suzuki has used the hybrid version to offset the lack of a diesel powertrain in its line-up. Hybrid versions make up 22-23% of Grand Vitara’s overall sales.

Hybrid technology lacks the rock bottom running cost. And the zero tail pipe emissions have all the advantages of an EV. But at the same time, hybrids don’t need to be plugged in for charging and there is no range anxiety.

Electric cars continue to be in demand, but the growth is beginning to moderate as the pool of early adopters is exhausted. Against an industry target of 100,000 units in 2023, sales fell short by nearly 20%. Range anxiety and uncertain