
Their sales are being affected due to the lack of tax exemption in the country’s capital Delhi, which is considered better for the environment. Not only this, hybrid cars have to pay more road tax in Delhi than petrol and diesel -powered vehicles, due to which customers are taking less interest in buying them.
Manish Raj Singhania, president of the Federation of Motor Vehicle Dealers (FADA), said that, while the central government in the country is promoting both hybrid and electric vehicles (EVS) as environment-friendly, Delhi government policies are not as helpful for hybrid vehicles. Hybrid vehicles in Delhi are placed in the category of ‘non-green vehicle’ and are levied more road tax than petrol or diesel cars. This tax is completely different from the zero road tax on electric vehicles in Delhi.
This has made the situation such that companies like Maruti Suzuki and Toyota, who are rapidly adopting hybrid technology in their cars, are facing challenges in selling their hybrid cars in Delhi. Customers are raising questions that when these vehicles are better for the environment, then why do they not get any special discount in tax, especially when petrol/diesel cars are least tax.
Due to this rule of Delhi, hybrid cars are getting less incentive to buy in Delhi than other states (where tax exemption). Singhania hoped that the Union Ministry of Transport and other concerned Ministry, including Delhi, would consider tax on hybrid vehicles where there is tax inequality. This will make these vehicles more economical and attractive for customers and will help in achieving India’s green mobility goals.
If proper tax benefits are also given to hybrid cars, then they can play an important role in reducing the dependence of petrol and diesel, which will not only reduce pollution but will also save fuel expenses. At present, to see the increasing number of hybrid vehicles on the roads of Delhi, one has to wait for a change in similar policies.
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