Automakers Lobby Uttar Pradesh Against Hybrid Tax Waivers

Hyundai, Kia, Tata, and Mahindra are lobbying the Uttar Pradesh government to reconsider a recent tax waiver for hybrid vehicles, which they argue undermines India's goal of having 30% of new car sales as electric by 2030. The waiver, which lowers registration costs and benefits competitors like Toyota, has raised concerns that it could derail efforts to electrify transportation in India. In letters to the state government, the automakers emphasized that promoting hybrids could jeopardize significant investments in electric vehicle (EV) development, including Tata's $9 billion commitment. While hybrid advocates argue that the current EV infrastructure is insufficient, the rival automakers maintain that incentives should favor fully electric vehicles. The Uttar Pradesh transport official stated that the government is reviewing the objections, and no final decision has been made yet. The debate highlights the intense competition within India's automotive sector, particularly regarding the future of eco-friendly vehicles.