It was in October last year when a report came that Honda Car India will introduce an affordable hybrid model within a span of three years. This project is part of the firm’s Rs 9,200 crore investment plan that will also see the establishment of a third manufacturing unit in India. The Japanese carmaker has now reconfirmed that in the next two years it will launch hybrid models in India. The lack of supporting infrastructure is one of the key elements that need addressing before Honda starts introducing battery electric vehicles (BEVs) in India.

Considering the lengthy terms and conditions of the second phase of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME II India) and the lack of local manufacturers of EV components, Honda’s electrification plan for India does sound sane. But, on the contrary, selling hybrids in India won’t be an easy task either. Under the Goods and Service Tax (GST) structure, hybrid vehicles are taxed the same as luxury cars and SUVs. They fall in the 28 per cent tax bracket and attract an additional cess of 15 per cent. Total GST – 43 per cent.

Presently, the only hybrid car that Honda sells in India is the Accord Hybrid. It is brought to our shores via the CBU route and has an ex-showroom price of Rs 43.21 lakh. Like all hybrids, the Honda Accord Hybrid has two engines – an internal combustion engine (petrol) and an electric motor. Even though the total power output is 215PS, the sedan can still return 23.1kmpl. In fact, it is already compliant with Bharat Stage VI (BSVI) emission norms.

As far as BEVs are concerned, Honda aims to have 20 of them in its global portfolio by 2025. Obviously, there will be some aimed at mass-market segments. We expect Honda to bring at least a couple of them to India. Apart from those, the introduction of Fuel Cell EVs can’t be ruled out as well.

Source: PTI