Toyota stresses on incentivizing hybrids to drive EV adoption
NEW DELHI : Toyota Kirloskar Motor, the Indian subsidiary of Toyota Motor Corp, advocates for boosting demand for electric powertrains in India by promoting the adoption of hybrid vehicles alongside electric vehicles (EVs). The automaker believes that by fostering demand for both hybrid EVs (HEVs) and battery EVs (BEVs) India can achieve the scale to develop a competitive local production of electrified technologies, a top company official told Mint on Friday.
Japanese automakers led by Toyota and Suzuki Motor Company have long supported a diversified approach to transitioning to clean mobility globally, as opposed to focusing on pure-play BEVs. In India, self-charging hybrids or plug-in hybrids don't receive the tax benefit in the form of a lower goods and service tax (GST) that EVs do.
The Toyota-Suzuki alliance has a near monopoly in this technology in India, and globally. South Korean and European OEMs are also keen to bring hybrid vehicles to India but are apprehensive about competition challenges from the cost-efficient structures of the Japanese brands.
“If there aren't enough electric vehicles being sold in a market, then it's a chicken and egg problem. How does a manufacturer of EV parts, let's say e-motors, invest in India?" said Vikram Gulati, country head, Toyota Kirloskar Motor.
“So either you put in some government subvention, which is already coming in through the PLI scheme, or you also on top of it add the fact that you can supply the motors not only for electric vehicles but also for hybrids because motors are common," Gulati said. The company's e-drive plant in India --Toyota Kirloskar Auto Parts-- consists of key components of an electric powertrain which has a motor, generator, electric transmission,
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