The government will consider lowering import duty on hybrid vehicles to encourage the automakers to introduce more environment friendly products in the country.

"My department will recommend to the finance ministry but only after the outcome of this conference... how it should be done and how much. There could be some suggestions that we will certainly consider," Heavy Industries and Public Enterprises Minister Vilasrao Deshmukh told reporters on the sidelines of environmentally friendly vehicle conference in New Delhi.

If the country wants to have eco-friendly vehicle, definitely some concessions have to be offered, otherwise nobody would come forward, he said.

Currently, import of all vehicles, including hybrid, attract an import duty of over 100 per cent, making it highly expensive for Indian customers.

"We do not have that differentiation between hybrid vehicle and normal vehicle. For that we will wait for the outcome of the conference," Deshmukh said.

"It is very sure that we have to give more importance for the vehicles which have less emission," he added.

On continuing the excise benefits offered in the two stimulus packages, Deshmukh said, "Now things have changed. There is very good demand, the market is up now especially for four wheelers and two wheelers. I don't think there is much problem."