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India's Auto Lobby Asks Govt for Tax Parity for Hybrid EVs to Boost Sales

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Published on 20th November 2025, 12:36 AM

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Author

Akshat Lakshkar | Whalesbook News Team

Overview

India's leading industry lobby, Assocham, has requested the government to grant tax parity for Range-Extended Electric Vehicles (REEVs) with Battery Electric Vehicles (BEVs). REEVs use a small internal combustion engine to charge their batteries, addressing range anxiety. Assocham wants them taxed at 5% GST, similar to BEVs, to encourage automakers to introduce these models and boost clean fuel car penetration in India, while acknowledging a divide among auto manufacturers on the issue.