NEW DELHI, Sept 10 (Askume) – Volkswagen’s Skoda unit sees an opportunity to launch hybrid vehicles in India that will expand fuel choices for consumers and reduce emissions, its chief executive said in New Delhi on Tuesday.
Skoda already has four models in India, including SUVs and sedans, but this is the first time that the automaker is considering bringing a hybrid vehicle to the South Asian country.
“We also have products between pure electric vehicles and vehicles with a full internal combustion engine,” Klaus Zellmer told a conference, adding that hybrid vehicles should also be available.
Hybrid cars offer better fuel economy than gasoline models because they use both an electric motor and an internal combustion engine.
Toyota is the global leader in hybrid car sales and sells hybrids in India with partner Maruti Suzuki (MRTI.NS) .
India’s federal sales tax on electric vehicles is just 5%, while taxes on hybrid vehicles are as high as 43%, close to the 48% on gasoline vehicles.
Prime Minister Narendra Modi’s government aims for electric vehicles to account for 30% of car sales by 2030, up from 2% last year.
Other automakers are also considering hybrid vehicles.
Hyundai Motor Co. (005380.KS) is evaluating plans to launch its first hybrid car in India as early as 2026 , and Mahindra said in May it was “focusing closely” on hybrid technology.
Zelmer emphasized the need to stabilize Indian policy.
“We are fully committed to the transition to electric vehicles in India… We want to be the largest selling European brand in India by the end of this decade and we will do it in a sustainable way,” he said.
