Tata Motors Advocates For Exclusively Zero-Emission Vehicles To Combat Air Pollution
Tata Motors Advocates for Exclusively Zero-Emission Vehicles to Combat Air Pollution
Tata Motors Passenger Vehicles Managing Director, Shailesh Chandra, asserts that only zero-emission cars can play a crucial role in reducing air pollution, cutting down fuel imports and achieving net zero targets. In response to calls from a specific industry segment to reduce taxes on hybrid cars, Chandra emphasises that such vehicles do not align with key national objectives related to achieving net carbon-zero targets, improving air quality and reducing fossil fuel imports.
Chandra acknowledges the positive impact of hybrid and compressed natural gas (CNG) technologies on fuel efficiency and emission-related regulatory compliance. However, he underscores that these technologies cannot be equated with pure battery electric vehicles (EVs). He points out that the government already provides support to hybrid vehicles through lower taxation and argues against extending similar benefits to electric vehicles.
According to media reports, Chandra emphasises that hybrid cars cannot be compared to EVs as they primarily run on polluting fossil fuels. He notes a perceived effort to grant hybrids undue significance compared to EVs but highlights the government’s steadfast support for electric vehicles. The current tax incidence on hybrid vehicles in the country stands at 43 per cent, inclusive of Goods and Services Tax (GST), while battery electric vehicles attract a significantly lower tax of about 5 per cent.
Major Indian automakers like Tata Motors and Mahindra & Mahindra are directing their focus towards battery-electric vehicles, while Japanese automakers such as Toyota, Suzuki and Honda are leaning towards hybrid technology for cars in the domestic market. Chandra elaborates on the hybrid technology, describing it as essentially a fossil fuel vehicle presented as an EV due to its use of a motor and a small battery pack. He questions the rationale behind providing differentiated treatment for a fossil fuel-based technology.
According to Chandra, supporting zero-emission technology is the only way the automotive industry can contribute effectively to counter air pollution, reduce fuel imports and achieve net zero targets. He highlights the need for support for electric vehicles due to the high technology cost and the absence of a complete ecosystem for supplies and charging infrastructure. Chandra points out that around 45–50 per cent of Tata Motors’ electric vehicle customers in Rajasthan and Gujarat use rooftop solar units to charge their cars, utilising renewable energy sources. He anticipates similar trends in other parts of the country, moving away from coal-based energy grids.
Tata Motors expects to sell approximately 70,000-80,000 electric vehicle units in the current fiscal year and aims for sales significantly above 1 lakh units in the next fiscal year. The company is also planning to expand exclusive showrooms for electric vehicles at multiple locations in the coming year.
