India’s top electric vehicle (EV) makers, Tata Motors and Mahindra & Mahindra, are urging the government to reject hybrid vehicles in official fleets, documents reveal. The companies believe allowing hybrids will hurt the adoption and growth of zero-emission electric vehicles.
EV-Only Incentives Under Threat
In letters to the Ministry of Heavy Industries, automakers have requested that government incentives and support remain exclusive to battery electric vehicles (BEVs). The move comes in response to a May 2 advisory by the Commission for Air Quality Management (CAQM), which classified strong hybrids as “cleaner vehicles” and suggested their inclusion in government fleet programs.
Automakers Warn of Policy Confusion
Tata, Mahindra, Hyundai, JSW MG Motor, and Kia have all submitted letters opposing the CAQM proposal. They argue that hybrids—despite being less polluting than petrol or diesel cars—still rely on fossil fuels and do not match the clean performance of EVs.
“We urge the government to stay focused on EVs to support a cleaner future,” Mahindra stated in its May 15 letter.
Tata added that the recommendation could undermine billions in planned EV investments, disrupt India’s image as an EV-friendly nation, and send the wrong message to global investors.
Less Than 1% Govt Vehicles Are EVs
As of 2022, only 5,384 out of 847,544 government vehicles across India were electric—less than 1%. EV makers argue that including hybrids in green vehicle policies could slow EV adoption further, especially when the sector already faces challenges like high vehicle costs and insufficient charging infrastructure.
Investor Confidence at Risk
Tata, which secured $1 billion from TPG for its EV expansion, warned that policy inconsistency could drive away long-term investors. Mahindra’s EV unit is backed by Temasek and British International Investment, while Hyundai has committed over $500 million for EV production in India.
A Moody’s report estimates that Indian automakers are expected to invest over $10 billion by 2030 to boost EV and lithium-ion battery production. However, India’s EV penetration remains far behind that of China, Europe, and the U.S.
Industry Demands Clear EV-Only Policies
The EV industry is calling on the government to stick to its original EV roadmap and avoid diluting support by including hybrids in green vehicle programs.
“A clear, stable, and EV-focused policy is critical for India’s clean energy goals and long-term investor trust,” Tata emphasized.
