PM says hybrids to steer India towards clean mobility goal

New Delhi: Prime Minister Narendra Modi on Tuesday pitched hybrid vehicles, which run on fossil fuel engines as well as battery-operated motors, as a cornerstone of India’s clean mobility push, saying they can reduce pollution and also give old vehicles a new lease of life.

Speaking at the launch of India's largest carmaker Maruti Suzuki India Ltd’s first fully-electric sports utility vehicle (SUV), the e-Vitara, in Gujarat, Modi cited Maruti’s prototype hybrid ambulance as an example. He noted the vehicle dovetails with the Centre’s ₹10,900-crore PM E-Drive scheme, which has set aside ₹500 crore to incentivize hybrid and electric ambulances.

Framing hybrids as a bridge technology alongside electric vehicles (EVs), he said they strengthen India’s strategy of backing multiple clean mobility pathways while boosting local manufacturing and exports.

Maruti Suzuki's production of e-Vitara SUV models was flagged off by the prime minister in Hansalpur in Gujarat. The company plans to export a bulk of the EVs produced here.

Modi said he had asked the Indian industry to convert old ambulances into hybrids, a challenge that was taken up by Maruti Suzuki. “A few years ago, EVs were seen only as a new alternative. But I have always believed that EVs are a concrete solution to many problems. That’s why, during my visit to Singapore last year, I had said that we can convert our old vehicles, our old ambulances, into hybrid EVs. Maruti Suzuki accepted this challenge and, in just six months, developed a working prototype,” he said.

"These hybrid ambulances perfectly fit into the PM E-DRIVE scheme. In this scheme of about ₹11,000 crore, a dedicated budget has also been set aside for e-ambulances," he added. The government has allocated ₹500 crore under the PM E-drive scheme to incentivise hybrid and electric ambulances.

Calling Maruti Suzuki the "brand ambassador" of the ‘Make in India’ initiative, Modi said dozens of countries will now have Indian-made EVs and that India would become the hub for clean mobility with such capabilities.

This comes after a months-long tussle between EV makers and hybrid makers for equitable incentives for the two powertrains, where EV makers said hybrids should not get incentive parity since they are not zero-emission vehicles.

The prime minister said Maruti Suzuki's EV exports as well as the Japanese automobile giant-led new indigenous manufacturing capability of hybrid vehicle electrodes will also bolster India-Japan ties. "From today, electric vehicles made in Bharat will be exported to 100 countries. Along with this, hybrid battery electrode manufacturing is also starting today. This day is also giving a new dimension to the friendship between Bharat and Japan," he said.

Lauding the progress made by TDSG Ltd, Modi said the lithium-ion battery component maker for hybrid cars will boost India's efforts towards self-reliance. TDSG is a joint venture between three Japanese companies Toshiba, Denso, and Suzuki Motor.

"To strengthen EV manufacturing, it was necessary that Bharat also manufacture batteries. With this vision, we laid the foundation of the TDSG battery plant here in 2017. Under a new initiative by TDSG, three Japanese companies together will manufacture cells in Bharat for the very first time in this factory. Even the electrodes for battery cells will now be produced locally in Bharat. This localization will give new strength to Bharat’s self-reliance. It will also accelerate the growth of hybrid electric vehicles," Modi said.

Maruti Suzuki's hybrid vehicle portfolio is expected to contribute 25% to its revenue, while the EV segment is seen fetching 15% by 2030.

Hybrid vs EV tangle

The tiff between India's hybrid and EV makers began earlier this year when states' EV policies started giving equal incentives for the two powertrains. A draft of the Delhi's new EV policy in April proposed equal incentives for strong hybrids and electric vehicles, leading to a tussle between the two segments' lobbies.

The Centre's stance was measured, backing all forms of clean mobility, according to Mint's email interview with Union heavy industries minister H.D. Kumaraswamy in June. The PM E-drive scheme, which provides electric and hybrid vehicles to consumers at a discount, incentivizes hybrid and electric ambulances alongside electric two-wheelers, three-wheelers, buses and trucks.

India's earlier schemes to boost EV adoption, such as the two iterations of the Faster Adoption and Manufacturing of Electric (& hybrid) vehicles that ran from FY15 to FY24, had also incentivised commercial hybrid four-wheelers.