Maruti Suzuki bats for graded tax structure to boost sales of all vehicles using cleaner fuel, not just EVs

Goa: Citing the tax incentive given to electric vehicles (EVs), Indian automobile maker Maruti Suzuki has asked the government to consider introducing a graded tax structure for passenger vehicles on the basis of carbon emissions, and provide some incentive on cleaner alternatives such as CNG (compressed natural gas) and strong hybrids to promote green mobility in the country.

“Currently, EVs are taxed at 5 per cent, but there is no differentiation for cleaner fuels like CNG or for strong hybrids,” pointed out Shashank Srivastava, senior executive officer, marketing and sales, Maruti Suzuki India Ltd, at a select media roundtable. “There should be some gradation,” he added.

He said EVs are projected to account for only about 17 per cent of cumulative new vehicle sales in the country by 2030. Until then, he said, about 43 million cars are expected to be sold in India, of which around 4 million will be EVs. “What do we do for the remaining 39 million vehicles?” 

“There is a need to reduce emissions for those vehicles also. So either you need to increase fuel efficiency or use alternate fuels which are more environmentally friendly,” he added.

While EVs have zero tailpipe emissions, there is a need to have some support for those vehicles that may not have zero emissions but are still good for the environment compared to gasoline- or diesel-powered vehicles, he said.

“For example, in the Olympics, No. 1 gets gold, but no. 2 and no. 3 also get silver and bronze, respectively,” he said, adding that, in the same spirit, for the usage of CNG or strong hybrids, the government could have a structure of gradation in terms of the duty and this will certainly help the environment too.

Maruti Suzuki had previously announced that the company will be launching its first electric car in India — SUV eVX — in 2025.

The reporter was in Goa on the invitation of Maruti Suzuki

(Edited by Geethalakshmi Ramanathan)

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