JSW MG Motor India says that by 2026, at least half its new launches will be plug-in hybrids and the GST cut will help drive significant adoption.
18 Jan 2025 | 4703 Views | By Prerna Lidhoo
JSW MG Motor India’s director, Parth Jindal seeks a lower goods and services tax (GST) on plug-in hybrids from the current 45% in order to incentivize the hybrid technology which according to him is the “right transition technology” for India. The company said at least half its new launches will ...
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JSW MG Motor India’s director, Parth Jindal seeks a lower goods and services tax (GST) on plug-in hybrids from the current 45% in order to incentivize the hybrid technology which according to him is the “right transition technology” for India. The company said at least half its new launches will be plug-in hybrids by 2026.
“There is a raging debate going on in the automotive sector regarding lowering of the tax rate for hybrids and plug-in hybrids. So, we have made a representation to the government on plug-in hybrids that the tax rate should be brought down from a current 43% to a lower level, not as low as 5%, but somewhere in between to incentivize plug-in hybrids,” Parth Jindal, Director, JSW MG Motor said at the Bharat Mobility Global Expo 2025.
He said that it’s a transition technology since charging infrastructure is going to take some time to truly develop and become available everywhere in this country. Pure electric vehicles (EVs) in India currently attract a GST rate of 5%. However, plug-in hybrid vehicles — which combine battery-powered electric motors and internal combustion engines — are subject to a significantly higher tax slab. Companies such as Maruti Suzuki and Toyota Kirloskar Motor are advocating for lower tax rates on hybrid vehicles.
“On full charge, a plug-in hybrid vehicle can travel at least 100 kilometers. And normally in a city, nobody travels more than 60 to 70 kilometers on a daily basis. And then whenever you are on the highway or are traveling far, you have an engine as well. Hence, we request the government to look at this as a transition technology. And for a predefined period of time, maybe three years to five years, look at lowering the tax rate on plug-in hybrids only, so that it becomes affordable for every customer,” he added.
He further said that India can go back to 43-45% taxes on hybrids after five years because by then, the charging infrastructure would have developed. “We hope the government looks at this favorably because I think it is the right technology for our country. The company plans to launch its first plug-in hybrid in 2026.
“We are planning new launches every three to six months, which means we will launch anywhere between two to four launches a year; 50% of which will be EVs, and 50% of those will be plug-in hybrids. The plug-in hybrid one will also have an ICE version, may also have a pure EV version,” Jindal said.
He added that while volumes depend on customer acceptance, GST and favourable government policies can significantly help drive the growth of the segment.