Tata Motors has strongly opposed tax concessions to hybrid cars saying there should be a level playing field for all players competing in the same market.

In a bid to promote electrification, the government is imposing a GST of 5 per cent on electric vehicles, while hybrids are being taxed at 43 per cent and petrol cars attract the highest levy of 48 per cent.

Some of the Original Equipment Manufacturers such as Toyota and Maruti Suzuki have been lobbying the government for lower taxation for hybrid cars as they reduce carbon emissions compared with gasoline cars. Tesla, in a bid to enter the Indian EV market, had lobbied for a lower import duty.

Sailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Ltd, a subsidiary of Tata Motors and its EV arm, said: “We advise against concessions for hybrid cars. Asking for a differential treatment or for any concession is not required because it is primarily a fossil fuel technology and, therefore, it should get the same treatment that a CNG would get.”

Tata Motors representatives have reportedly met officials and written to India’s trade department that the country faces an urban air quality crisis with health implications. They feel hybrids should not be incentivised as they are already taxed lower than gasoline cars.

Punch EV

Tata Passenger Electric Mobility launched its first pure EV — the Punch.ev — on Wednesday. It is the first product based on its recently introduced, advanced pure EV architecture — acti.ev.

At an introductory price of Rs 10.99 lakh, the Punch.ev comes with two battery pack options — 25 kWh —offering a range of 315 km, and a 35 kWh option, which offers a range of 421 km.