President of auto industry organization SIAM, Abhay Firodia, claimed this week that hybrid technology is not a necessity for shifting towards electric mobility and backed current incentive of the government for the hybrids.
Currently, hybrids draw 15% cess plus GST of 28%. Companies such as Honda, Toyota, and Maruti Suzuki have asked for improved incentives for hybrids claiming it was essential for changeover to complete electric cars. “What we are claiming is that the government has measured an incentive at a lowered stage for hybrids. There is bigger incentive for electric cars. It represents approach of government where they view hybrids at best as a transitory stage,” Firodia claimed.
With battery price lowering down in the coming time, electric mobility will by design substitute fossil fuels, he further added. “Hybrid tech is not an essential measure for electric mobility,” Firodia claimed to the media. SIAM as an organization has various type of members who make two-wheelers and commercial cars as well, so it can’t support only one opinion.
He further added that the government has been reliable with its rules for the auto industry. “There might be problems regarding rates of taxes. It is something that has to be solved by having discussion with the government and it is currently in progress. I do not believe that on part of the government there is policy flip flop,” Firodia claimed in an interview.
SIAM is in talks with the government to adjust particular rates on some segments of cars that are in requirement of correction, he further added. “There are problems regarding ambulances and mini buses, which need correction,” Firodia claimed. On electric mobility he claimed that there is a requirement to transport all the shareholders together comprising industry, government, and academia.
“No matter who claims what, electric mobility is not arriving in a few days, it will require years. It will require years do not mean we much time. We require starting at the earliest and for that cause a discussion has been made,” Firodia claimed. “This discussion will take some time. We do expect there will be clearness as to how we approach together forward,” Firodia claimed.