Now Reading: JSW MG seeks tax breaks for PHEVs, eyes 70% localisation by 2027
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JSW MG seeks tax breaks for PHEVs, eyes 70% localisation by 2027
JSW MG Motor has sought tax incentives for plug-in hybrid electric vehicles (PHEVs) from the Indian government, arguing the technology is a crucial bridge to full electrification. The automaker also announced plans…
JSW MG Motor has sought tax incentives for plug-in hybrid electric vehicles (PHEVs) from the Indian government, arguing the technology is a crucial bridge to full electrification. The automaker also announced plans to increase localisation of its vehicles to 70% by 2027, up from the current level.
The company aims to significantly boost its annual vehicle sales in the coming years and is exploring expanding production capacity beyond its existing plans. The push for PHEV incentives comes as the government currently offers lower goods and services tax (GST) rates only on battery electric vehicles (BEVs), not on hybrids.
JSW MG stated that a favourable tax policy for PHEVs would accelerate the adoption of greener vehicles in India, where charging infrastructure remains limited. The company's localisation target is part of its strategy to reduce costs and comply with the government's production-linked incentive (PLI) scheme for the automotive sector.
Indian Opinion Analysis
JSW MG's push for PHEV incentives signals a growing industry demand to broaden India's green vehicle policy beyond pure battery electrics. Under current GST rules, BEVs attract 5% tax while hybrids are taxed at 43%, a gap the company argues hinders a gradual shift. The 70% localisation goal aligns with the government's deeper auto PLI scheme targets, which reward higher domestic value addition. A key test will be whether the finance ministry revisits the hybrid tax structure in the next budget or sticks to the current BEV-focused strategy. The company's capacity expansion plan, which could see new investment in Gujarat, depends partly on a clearer policy roadmap for PHEVs.
Source: auto.economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
