Tata, Toyota! It's time for a rethink on the ridiculous cess on hybrids in India
The Indian Government claims that it cares about the environment, the Roadways Minister threatens to ‘bulldoze’ old automotive companies out of the way if they refuse to change. But thanks partially to a bureaucracy that loves red-tape and policy-makers who heads are in the clouds dreaming of a land of milk and honey instead of the immediate problems that concern us, not only did India lose out to China when it came to American electric car pioneer Tesla Motors' first foreign factory but we also saw Japanese car giant Toyota stop production of its ‘made-in-India’ Camry Hybrid. The former came about because the Chinese Government actually invested in building the infrastructure that will support a massive electric car rollout instead of keeping their fingers crossed and hoping someone else would, and the latter came about because the boffins at the Finance Ministry think that hybrid cars are only bought by the very rich so let us lighten their wallets even more.
There is another piece of data that came out last week. Despite global crude prices continuing to be depressed, Indians pay a huge amount in State and Central excise. But despite that the usage of petrol and diesel climbed a massive 10 per cent in the month of September. This proves some of the economic doomsday predictions might be a bit off; rapidly climbing consumption of petroleum products indicate that the economy is ticking along a lot better than expected. Is that a good thingIJ Not the economy ticking over better than expected, but the rapidly increasing use of refined petroleum productsIJ No, because we all know that burning petrol or diesel causes a slew of pollutants, and while vehicular pollution is not the main cause of the toxic air quality in the Capital and elsewhere, it is a problem. And it is a problem that the government, could with some smart policy decisions begin to address.
Yes, while India must move to an all-electric vehicular system quickly, just like the Chinese are doing, we must also understand that change won’t happen overnight. Especially since the technology behind electric cars, while not embryonic anymore, is still taking baby steps and will take a decade or longer to mature even at today’s rapid pace of technological evolution. Which is why the Government must encourage hybrids, and come up with a proper definition for the system. Unlike what one large Indian carmaker is falsely labelling as a hybrid, hybrids should be able to run on battery power alone when the engine is switched off. In vehicles like the Toyota Camry and Honda Accord hybrids, the ability to switch power sources allows these vehicles to dramatically increase their fuel economy and also increase vehicular performance. So much so that manufacturers of supercars like Ferrari and Porsche have manufactured their latest and best cars as hybrids. Using similar technology in a small car could mean a big positive for fuel-efficiency statistics. Better fuel efficiency means lower emissions, a smaller bill for the consumer and the Government. But for that the Government has to encourage hybrid cars, so instead of taxing them punitively provide incentives to buyers. The change to electric vehicles will come, but when you try to skip steps you sometimes end up falling flat on your face.