Homegrown carmakers JSW Motors and Mahindra & Mahindra (M&M) are open to adopting range-extended electric vehicles (REEVs) if India’s policy framework expands incentives beyond pure electric vehicles, even as experts warn against equating the technology with battery-electric cars.
REEVs, also called REX (range extender) hybrids, are always driven by an electric motor but carry a small internal combustion engine (ICE) whose sole role is to generate electricity when the battery charge runs low. Comparatively, strong hybrids have both an electric battery and a powerful ICE engine, both of which can run the vehicle.
To be sure, no carmaker in India manufactures or sells REEVs currently. Strong hybrid vehicles are on offer from Japanese carmakers such as Toyota Kirloskar Motor, Maruti Suzuki India and Honda Cars India.
Discussions on the viability of REEV technology gained momentum after Indian industry lobby Assocham (Associated Chambers of Commerce and Industry of India) proposed taxing them at 5%, on par with EVs, in November. Then, in December, American carmaker Ford Motor Co. announced a pivot to hybrid vehicles, including REEVs.
Under the super credit regime of the proposed corporate average fuel efficiency (Cafe III) norms, one REEV will be counted as three cars, just like EVs.
Nalinikanth Gollagunta, chief executive-automotive division at M&M, told Mint in an interview on the sidelines of the XEV 9S launch in November that EV and internal combustion engine (ICE) are at two ends of the spectrum, in which a hybrid is just an upgrade from an ICE, while a REX is just a downgrade from an EV.
“At this point in time, we're focused on EV because the entire regulatory policy system is focused on EV. Going to REX is an optionality we can have if we need to have it, because it’s a small dip from where we are today,” he said. “We’ll see how it plays out. If the regulatory environment changes, there can be an optionality we can bring in at that point in time.”
In response to a query from Mint amid speculation that the company is considering the technology, JSW Motors CEO Ranjan Nayak said such transitional technology allows consumers to adopt electrification without fear of range limitations, citing the example of China.
“Supported by consistent incentives, green number plates, and inclusion in the new energy vehicle policy framework, plug-in hybrid electric vehicles (PHEVs) and REEVs became the foundation of China’s EV revolution,” Nayak said. “Although REEVs are electric-driven vehicles, ambiguity in goods and services tax (GST) classification risks placing them under higher tax slabs, undermining affordability.”
JSW Motors is the upcoming car brand of JSW Group, which is slated to launch its first vehicle in the October-December quarter of 2026.
Maruti Suzuki, Tata Motors, and Hyundai did not respond to Mint's queries on whether REEVs can be backed in the country.
Meanwhile, Ford announced on 16 December that it would back hybrid vehicles and write off $19.5 billion investment in EVs as it pivots to a multipower train approach.
The company announced that it would offer a range of hybrids—underpinned by its Universal EV Platform—to complement efficient gas engines. “By 2030, about 50% of Ford’s global volume will be hybrids, extended-range EVs and EVs, versus 17% today,” the company said.
The viability question
Mint reported on 20 November that Assocham—which counts Maruti Suzuki, Toyota Kirloskar, JSW Group, and M&M as its members—wrote to the ministry of heavy industries (MHI) that the current tax structure would force automakers to introduce such vehicles at a higher price, as they are generally heavier and bigger in size.
While strong hybrid vehicles attract 40% GST, the lobby group wants REEVs to be taxed at 5%, just like EVs.
However, experts are cautious about rushing to incentivize the technology. Amit Bhatt, managing director at non-profit research organization International Council on Clean Transportation (ICCT), said theoretically, such vehicles have no tailpipe emissions as they run on an electric motor while in operation.
"However, it has a small ICE engine, which runs on gasoline and acts as a generator, so the role of conventional fuel is not going out. Such vehicles will still have emissions in their overall operations, unlike an EV, which takes electrical power and runs purely on it,” Bhatt said. “The question is whether time and energy should be spent on incentivizing technology, which will only play a transitional role in the short term, if the end goal is EVs.”
Automakers are dabbling with different types of hybrid vehicles as consumers still prefer vehicles with elements of ICE.
Consulting major Deloitte’s 2025 Global Automotive Consumer Study, released in April, said only about 8% of consumers said they would prefer a battery-powered EV, a decline from 10% recorded in its 2024 study. In comparison, the share of consumers preferring hybrid EVs and PHEVs was 33% in the 2025 study.
According to the government’s Vahan portal, EV sales in the country rose by 76% to 178,000 units during 2025, accounting for approximately 4% of the passenger vehicle market.
Tata Motors led the market with nearly 70,000 EV sales, followed by JSW MG Motor, which saw sales touch nearly 52,000. M&M sold over 33,000 EVs during the year.