- By Divanshi Sharma
- Fri, 17 May 2024 12:40 PM (IST)
- Source:JND
Mahindra is closely monitoring the hybrid vehicle market and is prepared to introduce hybrids if customer demand increases, said Anish Shah, Mahindra's Managing Director. However, Shah believes that government incentives for hybrid cars are not justified. He explained that Mahindra views hybrids as an extension of internal combustion engine (ICE) vehicles, with a slightly different powertrain. If hybrid technology evolves to resemble electric vehicles (EVs) more closely, Mahindra will adopt it more swiftly.
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Currently, Mahindra is focused on EVs but remains prepared to explore hybrids. "We are keeping a close eye on hybrid technologies and will act accordingly," Shah stated. He acknowledged the ongoing debate about hybrids but argued that government incentives should support changes that benefit the economy. EVs, for instance, have zero emissions and reduce fuel imports, making them more deserving of incentives.
Shah pointed out that hybrids do not offer significant emissions reductions and are more expensive to produce due to having two powertrains. While hybrids provide some fuel efficiency benefits, they are marginal. This lack of substantial environmental benefit is why many governments have stopped providing incentives for hybrids over the past two decades.
This discussion occurs amid Toyota's strong push into the hybrid market, where it holds about 78 per cent market share. Suzuki Japan also plans to introduce cost-effective hybrid cars and is advocating for lower GST on hybrids to increase sales volumes. In 2023, hybrid models made up roughly 2 per cent of India's total car sales of 4.1 million.
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Shah’s comments highlight Mahindra’s readiness to adapt to market demands while expressing skepticism about the need for government incentives for hybrids. Mahindra remains committed to its EV strategy, focusing on technologies that offer clear benefits in terms of emissions and fuel efficiency. Meanwhile, companies like Toyota and Suzuki continue to shape the hybrid vehicle landscape in India.
