Mahindra & Mahindra, one of India’s largest automakers, has strongly batted for electric mobility as the way to go for India. According to this Mumbai-based auto major, incentivizing EVs is not only desirable but also imperative for the betterment of the nation. The company has made this statement at a time when there is debate on policies relating to vehicle taxation, especially after the recent move by the Uttar Pradesh government to exempt hybrid vehicles from paying registration fees.
Electric vehicles are already a globally recognized major constituent in the reduction of the country’s carbon footprint and enhancement of urban air quality—views that Mahindra & Mahindra have adopted. With its specific investments in electric mobility, Mahindra says that a concerted push toward EVs is in the interest of the nation. Moving in the direction of electric vehicles is the right one for the government, according to the company, in alignment with its aspirations for cleaner and more sustainable country development.
Companies that have so far invested heavily in fully electric vehicles, such as M&M, are raising their eyebrows at a recent move by the state government of Uttar Pradesh, which exempted the purchase of hybrid vehicles from payment of road tax. The fear is that if Uttar Pradesh sets an example, other states might follow him, which could take the wheels off India’s electric vehicle market.
Presently, in India, hybrids are heavily taxed in comparison to electric vehicles. The total tax incidence on hybrids, including GST, is at 43%, compared to around 5% for battery electric vehicles. The reason for this large disparity in taxation has been a bugbear for manufacturers of hybrid vehicles, who have been rooting for tax parity with electric vehicles. However, M&M believes that the focus should be more on electric vehicles, as they represent the most sustainable and long-term solution for the automotive industry and the nation.
Mahindra & Mahindra, for its part, is quite clear. It will stick to the EV roadmap, which it believes can be robust and successful with the right products and government support. The national focus now has to be on driving electric mobility, and any policy that takes away from this objective is likely to be counterproductive.
Conclusion
Mr. Anand Mahindra, the Chairman of Mahindra & Mahindra, said, “We have always believed that EVs are the future of transportation in India. We see no reason why the government should lose focus on promoting EVs.” Having committed substantial investment in electric mobility, M&M is poised to steer the clean and energy-efficient future of the Indian automotive industry.
Source: PTI