In comparison, EVs and hybrids together account for 49% of China’s auto market, reflecting a successful and rapid transition from internal combustion engine vehicles. The low share of EVs and hybrids in India’s auto sales is despite favorable policies for EVs with lower taxes on such vehicles and incentives for hybrids announced by states like Uttar Pradesh.
The continued robust growth in sales of high-performance hybrid vehicles in India, industry experts say, indicates that consumers and manufacturers are opting for this technology, which offers comparatively better fuel efficiency without facing the infrastructural challenges associated with full electrification.
A key growth driver in China is the strategic focus on plug-in hybrid vehicles (PHEVs), which combine the advantages of electric and conventional engines and are considered an ideal entry point for the transition to fully battery-powered electric vehicles.
Leading Indian automakers claim that strong hybrid technology can significantly reduce oil consumption and CO2 emissions compared to petrol and diesel vehicles. However, “they (hybrids) have a profitability gap that needs to be filled. Most countries in the world are providing some kind of financial support to encourage mass adoption of these technologies,” said Rahul Bharti, Executive Director, Corporate Affairs at Maruti Suzuki, the country’s largest automaker.Promoting PHEVs is expected to boost the growth of sustainable and preferred mobility solutions. Currently, high taxes continue to be an entry barrier for PHEVs in the Indian market. “It will also ease range anxiety by reducing dependence on extensive charging infrastructure. This balance makes PHEVs a practical choice in the current evolving scenario,” said Rajeev Chaba, CEO Emeritus at JSW MG Motor India. The company is expected to launch a PHEV model soon.By setting a minimum range for PHEVs, Indian policymakers can encourage the development of these vehicles with longer all-electric capabilities while also encouraging technological advances in battery efficiency.
“Linking PHEV incentives to a minimum electric range of 50 km is consistent with global practice. This range covers typical daily commutes and makes PHEVs a practical option for reducing fuel consumption,” said Randheer Singh, former director of government think tank Niti Aayog.
Automakers say the focus should be on technologies that accelerate the adoption and transition to zero-emission mobility. Globally, Mercedes-Benz uses PHEV technology in both production and high-performance cars like the AMG. “In India, our hybrids are limited to the AMG segment and are used more for performance. For example, the AMG S 63 sold in India has an electric range of 33 km and a battery capacity of 13 kWh,” said Santosh Iyer, MD & CEO, Mercedes-Benz India.
“While China’s rapid adoption of NEVs (new energy vehicles) is reshaping global supply chains and technology development, India’s more gradual approach reflects the realities of its infrastructure and consumer market,” said Ravi Bhatia, President of Jato Dynamics.
He added that India can accelerate its transition to clean mobility by balancing domestic adoption with export opportunities.
