The Centre's incentives must be directed at electric vehicles (EVs) rather than hybrid cars, as the latter fundamentally depend on fossil fuels and continue to emit tailpipe pollutants unlike 'true zero-emission vehicles', a parliamentary standing committee stated in a report tabled in the Rajya Sabha on December 12.
The recommendation comes amid a clear divide in the auto industry, with companies like Toyota and Maruti Suzuki pushing for support for strong hybrids, while domestic EV leaders Tata Motors and Mahindra & Mahindra insist incentives should be reserved for EVs.
The parliamentary standing committee -- headed by BJP Rajya Sabha MP Bhubaneswar Kalita -- said higher ethanol blends raise concerns for older vehicles, as they lack advanced systems to handle such fuels and may suffer mechanical damage and higher emissions.
'While ethanol blending may form part of a transitional energy strategy, it should not inadvertently divert policy focus or fiscal support from the paramount objective of transitioning to a zero-tailpipe-emission vehicle fleet,' it stated.
The committee stated that the government's production-linked incentives, purchase subsidies, and tax benefits must be 'strategically' focused on accelerating the adoption of 'genuine' zero-emission vehicles like battery EVs and fuel cell EVs.
-- Deepak Patel, Business Standard
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