Will Not Propagate Hybrid, But Only Electric Vehicles: Piyush Goyal

The government has cleared the air that it is not interested in promoting hybrid cars as they conserve only small portion of the fuel (diesel/petrol) and the 15 per cent cess on these vehicles will not be waived off in the foreseeable future.

However, it has reaffirmed that it will go the whole hog in propagating zero-emission vehicles as that is the future of mobility. Union Power Minister Piyush Goyal stated that as the world is moving towards electric vehicles, the government is working on a road map to ensure all-electric car fleet in the country.

“India should move towards selling only electric vehicles by 2030. The existing cars may take a little longer to replace and the government is working on a framework for promoting electric vehicles. Niti Aayog is currently tasked with preparing a futuristic vision for electric cars,” Goyal told reporters at a FICCI event held in New Delhi.

When asked about his perception on hybrid vehicles, he maintained, “I myself own a hybrid vehicle and have recommended to the honorable (union) ministers (to buy it). But it is not at all advisable for an intermediate technology which reduces fuel consumption slightly. However, it is not the future. The future (of mobility) is all-electric cars and some companies who don’t have electric cars have come to me for not opposing (additional cess on) hybrid vehicles. The world is moving toward electric vehicles. If someone is keen to buy a hybrid car, he should be ready to shell out more. The bottom line is we would like to promote electric vehicles.”

However, he admitted that it may take a little longer to replace existing petrol and diesel vehicles in the country. The goods and services tax (GST) Council’s decision to increase cess on mid size luxury cars are correction on government as cess will help bringing rates of these cars at par with pre GST rates.