JSW MG Motor India is pushing for lower, differential taxation for plug-in hybrid electric vehicles (PHEVs) and extended-range electric vehicles (EREVs), arguing that lower taxes can accelerate new-energy vehicle adoption and help India move faster towards energy security. Speaking on the sidelines of the MG Hector Tomahawk launch in PHEV and EV versions, Parth Jindal, director, JSW MG Motor India, said the company is not seeking a tax concession for itself, but wants the benefit passed on to consumers. “We don’t want any discount. We want the consumer to get a discount,” he said.
Jindal said the government’s current approach is that if a vehicle can be driven using an internal combustion engine, it is classified as an ICE vehicle. However, he argued that an EREV, where the engine essentially acts as a generator for the battery, should receive EV-like treatment.
Reclassifying EREVs
“In my view and in the government’s view and NITI Aayog’s recommendation to the government, EREV should be considered as an EV,” he said.
In an EREV, the battery provides the primary driving range, while a smaller engine acts as a generator to charge the battery when required, helping eliminate range anxiety while retaining the driving experience of an EV.
He pointed to the CAFE 3 framework, where EVs and EREVs have the same multiplier effect for CAFE credits, as a possible indication of the policy direction. Jindal said MG would work with the government as these products enter the market to determine the appropriate GST treatment, adding, “Because there’s no EREV in the market right now.”
Driving New-Energy Adoption
MG’s push for PHEVs and EREVs is based on its assessment that Indian consumers have different driving requirements. Some want the economics of an EV but travel shorter distances, while others drive long distances and want fuel efficiency without range anxiety. This, Jindal said, was the genesis of MG’s plug-in hybrid strategy. “Any decision that is made starts with the consumer,” he said.
Jindal said MG’s new ADAPT platform underpinning the Hector Tomahawk can accommodate multiple powertrains and that the company wants to bring EREV technology to India. “EREV is definitely something that we would like to bring, we can bring, and we want to bring it,” he said. Jindal said MG is not seeking a blanket tax reduction, but differential taxation to support faster adoption of new-energy technologies. “If you make it less, the adoption will be faster,” he said.
The objective, he added, is to help India reach higher new-energy vehicle penetration. “It is not driven by profiteering. It is driven by the need that if we want to get to 30% or more, all these technologies that are available should be treated in a manner.” Lower taxation, he said, would make these technologies more accessible and accelerate adoption. “That will allow for faster adoption of these technologies and we get to energy security faster than originally planned. That’s the idea.”
