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Time of India
5 days ago
- Automotive
- Time of India
Indians on the hybridge to electric future: Hybrid cars demand surges at a pace similar to EVs despite fewer options
Demand for strong hybrid cars is growing at a pace similar to electric vehicles (EVs) despite limited offerings, and government incentives promoting the latter, prompting carmakers to line up more hybrid models to meet increasing customer demand amid high fuel prices. There are only about five strong hybrid models on sale in the country, compared to 15 EVs. Yet, both segments grew about 18per cent year-on-year in FY25, with hybrids emerging as a practical, fuel-efficient alternative while pure electric adoption slowed amid continuing infrastructure bottlenecks. Automakers are creating more room for hybrids in their emissions compliance strategies ahead of stricter fuel-efficiency rules set to kick in from April 1, 2027. From Maruti Suzuki to Hyundai Motor India and Mahindra & Mahindra, they are gearing up to launch more than half a dozen hybrid vehicles over the next two years. 'Interestingly, automakers that previously dismissed hybrids are now actively evaluating or developing hybrid models for India,' said Gaurav Vangaal, associate director at S&P Global Mobility. 'This shift reflects evolving market dynamics and growing consumer interest, which—month after month—is increasingly steering the industry toward hybrid technology.' According to the industry, more than half of the sales of Toyota Innova Hycross and Urban Cruiser Hyryder now come from strong hybrid variants. Maruti Suzuki offers only a strong hybrid version of the Invicto MPV. At Honda, the share of strong hybrid in City sedan sales has increased to almost 15per cent, up from 9-10% after launch. 'With the upcoming implementation of CAFE 3 norms, we can expect a surge in launches across both hybrid and electric powertrains,' Vangaal said. The government is in the process of formulating the third edition of the Corporate Average Fuel Efficiency (CAFE 3) norms. Under CAFE, fuel consumption and emission targets apply to the overall fleet of a carmaker, including EVs and hybrids, rather than individual models. This gives manufacturers leeway to sell larger, less efficient vehicles as long as their cleaner models offset the impact on overall fleet emissions. Fuel-wise vehicle sales data collated by industry body Society of Indian Automobile Manufacturers (SIAM) show hybrid vehicle sales rose 18% year-on-year to 105,000 units in FY25. Electric vehicle sales, too, grew at a similar pace to 118,000 units, largely driven by new, more affordable models introduced by Tata Motors, JSW MG Motor and M&M. Sales of petrol vehicles, meanwhile, dipped by 6.6per cent to 2,482,000 units. Industry watchers said the pace of growth in EV sales has moderated (from about 90% in FY24) despite central and state governments lining up several incentives — from reduced GST rate of 5per cent, waiver of registration charges and road taxes, and income tax benefits to enthuse customers to shift to EVs. They mostly blame it on the lack of adequate charging infrastructure. Thus, buyers looking to save on fuel costs are increasingly opting for strong hybrid vehicles. New Hybrids While Maruti Suzuki is set to take the covers off a hybrid SUV (codenamed Y17) ahead of the festive season this year, its Korean rivals Hyundai and Kia are set to drive in their first strong hybrid models next year, industry insiders said. JSW MG Motor is examining plug-in hybrid vehicles for launch in India. Industry insiders said homegrown M&M, which so far has been betting big on born EVs, too, is developing a strong hybrid vehicle for launch in 2027. 'It is heartening to note that both BEVs and strong hybrids are growing well,' said Rahul Bharti, senior executive officer at Maruti Suzuki. 'SHEVs (strong hybrids) also enhance energy efficiency and reduce CO2 significantly over pure petrol/ diesel vehicles.' The strong hybrid variant of Grand Vitara, for instance, emits 26per cent less CO2 than the pure ICE model and offers 36per cent increase in fuel efficiency. In the case of the Invicto, energy efficiency is up by 44per cent while CO2 reduction is 30%. 'As the market leader, we will pursue all powertrain technologies including BEVs, SHEVs, CNG and CBG and ethanol flex fuel for decarbonisation,' Bharti said. Mahindra also is planning to drive in a hybrid version of XUV 3XO, a senior industry executive aware of the company's plans said. 'When diesel prices were lower than petrol, customers who had to run their vehicle a lot everyday preferred to buy a diesel vehicle. The same thing is going to happen with hybrids today,' the executive said. Hyundai Motor India managing director Unsoo Kim at its latest post-earnings call said the company will launch 26 products – 20 ICE and 6 EVs – by FY30, in addition to ongoing product interventions and updates. 'Additionally, we shall be introducing new ecofriendly powertrains like hybrids,' he said. Kim said the company is looking at building a 'well-balanced portfolio across (internal combustion engine) ICE and eco-friendly technologies to cater to the diverse customer's needs across segments.'
Time of India
5 days ago
- Automotive
- Time of India
Indians on the Hybridge to Electric Future
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Epaper Demand for strong hybrid cars is growing at a pace similar to electric vehicles (EVs) despite limited offerings, and government incentives promoting the latter, prompting carmakers to line up more hybrid models to meet increasing customer demand amid high fuel are only about five strong hybrid models on sale in the country, compared to 15 EVs. Yet, both segments grew about 18% year-on-year in FY25, with hybrids emerging as a practical, fuel-efficient alternative while pure electric adoption slowed amid continuing infrastructure are creating more room for hybrids in their emissions compliance strategies ahead of stricter fuel-efficiency rules set to kick in from April 1, 2027. From Maruti Suzuki to Hyundai Motor India and Mahindra & Mahindra, they are gearing up to launch more than half a dozen hybrid vehicles over the next two years.'Interestingly, automakers that previously dismissed hybrids are now actively evaluating or developing hybrid models for India,' said Gaurav Vangaal, associate director at S&P Global Mobility. 'This shift reflects evolving market dynamics and growing consumer interest, which, month after month, is increasingly steering the industry toward hybrid technology.' According to the industry, more than half of the sales of Toyota Innova Hycross and Urban Cruiser Hyryder now come from strong hybrid Suzuki offers only a strong hybrid version of the Invicto MPV. At Honda, the share of strong hybrid in City sedan sales has increased to almost 15%, up from 9-10% after launch.'With the upcoming implementation of CAFE 3 norms, we can expect a surge in launches across both hybrid and electric powertrains,' said Vangaal of S&P. The government is in the process of formulating the third edition of the Corporate Average Fuel Efficiency (CAFE 3) norms. Under CAFE, fuel consumption and emission targets apply to the overall fleet of a carmaker, including EVs and hybrids, rather than individual models. This gives manufacturers leeway to sell larger, less efficient vehicles as long as their cleaner models offset the impact on overall fleet vehicle sales data collated by industry body Society of Indian Automobile Manufacturers (SIAM) show hybrid vehicle sales rose 18% year-on-year to 105,000 units in FY25. Electric vehicle sales, too, grew at a similar pace to 118,000 units, largely driven by new, more affordable models introduced by Tata Motors, JSW MG Motor and M& of petrol vehicles, meanwhile, dipped by 6.6% to 2,482,000 watchers said the pace of growth in EV sales has moderated (from about 90% in FY24) despite central and state governments lining up several incentives — from reduced GST rate of 5%, waiver of registration charges and road taxes, and income tax benefits to enthuse customers to shift to EVs. They mostly blame it on the lack of adequate charging infrastructure. Thus, buyers looking to save on fuel costs are increasingly opting for strong hybrid Maruti Suzuki is set to take the covers off a hybrid SUV (codenamed Y17) ahead of the festive season this year, its Korean rivals Hyundai and Kia are set to drive in their first strong hybrid models next year, industry insiders MG Motor is examining plug-in hybrid vehicles for launch in insiders said homegrown M&M, which so far has been betting big on born EVs, too, is developing a strong hybrid vehicle for launch in 2027. 'It is heartening to note that both BEVs and strong hybrids are growing well,' said Rahul Bharti, senior executive officer at Maruti Suzuki. 'SHEVs (strong hybrids) also enhance energy efficiency and reduce CO2 significantly over pure petrol/ diesel vehicles.'Mahindra also is planning to drive in a hybrid version of XUV 3XO, a senior industry executive aware of the company's plans said.
Economic Times
5 days ago
- Automotive
- Economic Times
Indians on the hybridge to electric future: Hybrid cars demand surges at a pace similar to EVs despite fewer options
TIL Creatives Representative Image New Delhi: Demand for strong hybrid cars is growing at a pace similar to electric vehicles (EVs) despite limited offerings, and government incentives promoting the latter, prompting carmakers to line up more hybrid models to meet increasing customer demand amid high fuel prices. There are only about five strong hybrid models on sale in the country, compared to 15 EVs. Yet, both segments grew about 18% year-on-year in FY25, with hybrids emerging as a practical, fuel-efficient alternative while pure electric adoption slowed amid continuing infrastructure bottlenecks. Automakers are creating more room for hybrids in their emissions compliance strategies ahead of stricter fuel-efficiency rules set to kick in from April 1, 2027. From Maruti Suzuki to Hyundai Motor India and Mahindra & Mahindra, they are gearing up to launch more than half a dozen hybrid vehicles over the next two years. 'Interestingly, automakers that previously dismissed hybrids are now actively evaluating or developing hybrid models for India,' said Gaurav Vangaal, associate director at S&P Global Mobility. 'This shift reflects evolving market dynamics and growing consumer interest, which, month after month, is increasingly steering the industry toward hybrid technology.' According to the industry, more than half of the sales of Toyota Innova Hycross and Urban Cruiser Hyryder now come from strong hybrid Suzuki offers only a strong hybrid version of the Invicto MPV. At Honda, the share of strong hybrid in City sedan sales has increased to almost 15%, up from 9-10% after launch. 'With the upcoming implementation of CAFE 3 norms, we can expect a surge in launches across both hybrid and electric powertrains,' said Vangaal of S&P. The government is in the process of formulating the third edition of the Corporate Average Fuel Efficiency (CAFE 3) norms. Under CAFE, fuel consumption and emission targets apply to the overall fleet of a carmaker, including EVs and hybrids, rather than individual models. This gives manufacturers leeway to sell larger, less efficient vehicles as long as their cleaner models offset the impact on overall fleet emissions. Fuel-wise vehicle sales data collated by industry body Society of Indian Automobile Manufacturers (SIAM) show hybrid vehicle sales rose 18% year-onyear to 105,000 units in FY25. Electric vehicle sales, too, grew at a similar pace to 118,000 units, largely driven by new, more affordable models introduced by Tata Motors, JSW MG Motor and M& of petrol vehicles, meanwhile, dipped by 6.6% to 2,482,000 units. Industry watchers said the pace of growth in EV sales has moderated (from about 90% in FY24) despite central and state governments lining up several incentives — from reduced GST rate of 5%, waiver of registration charges and road taxes, and income tax benefits to enthuse customers to shift to EVs. They mostly blame it on the lack of adequate charging infrastructure. Thus, buyers looking to save on fuel costs are increasingly opting for strong hybrid HYBRIDSWhile Maruti Suzuki is set to take the covers off a hybrid SUV (codenamed Y17) ahead of the festive season this year, its Korean rivals Hyundai and Kia are set to drive in their first strong hybrid models next year, industry insiders MG Motor is examining plug-in hybrid vehicles for launch in India. Industry insiders said homegrown M&M, which so far has been betting big on born EVs, too, is developing a strong hybrid vehicle for launch in 2027. 'It is heartening to note that both BEVs and strong hybrids are growing well,' said Rahul Bharti, senior executive officer at Maruti Suzuki. 'SHEVs (strong hybrids) also enhance energy efficiency and reduce CO2 significantly over pure petrol/ diesel vehicles.' Mahindra also is planning to drive in a hybrid version of XUV 3XO, a senior industry executive aware of the company's plans said.
Time of India
6 days ago
- Automotive
- Time of India
Indians on the hybridge to electric future: Hybrid cars demand surges at a pace similar to EVs despite fewer options
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: Demand for strong hybrid cars is growing at a pace similar to electric vehicles (EVs) despite limited offerings, and government incentives promoting the latter, prompting carmakers to line up more hybrid models to meet increasing customer demand amid high fuel are only about five strong hybrid models on sale in the country, compared to 15 EVs. Yet, both segments grew about 18% year-on-year in FY25, with hybrids emerging as a practical, fuel-efficient alternative while pure electric adoption slowed amid continuing infrastructure are creating more room for hybrids in their emissions compliance strategies ahead of stricter fuel-efficiency rules set to kick in from April 1, 2027. From Maruti Suzuki to Hyundai Motor India and Mahindra & Mahindra, they are gearing up to launch more than half a dozen hybrid vehicles over the next two years. 'Interestingly, automakers that previously dismissed hybrids are now actively evaluating or developing hybrid models for India,' said Gaurav Vangaal, associate director at S&P Global Mobility. 'This shift reflects evolving market dynamics and growing consumer interest, which, month after month, is increasingly steering the industry toward hybrid technology.' According to the industry, more than half of the sales of Toyota Innova Hycross and Urban Cruiser Hyryder now come from strong hybrid Suzuki offers only a strong hybrid version of the Invicto MPV. At Honda, the share of strong hybrid in City sedan sales has increased to almost 15%, up from 9-10% after launch. 'With the upcoming implementation of CAFE 3 norms, we can expect a surge in launches across both hybrid and electric powertrains,' said Vangaal of S&P. The government is in the process of formulating the third edition of the Corporate Average Fuel Efficiency (CAFE 3) norms. Under CAFE, fuel consumption and emission targets apply to the overall fleet of a carmaker, including EVs and hybrids, rather than individual models. This gives manufacturers leeway to sell larger, less efficient vehicles as long as their cleaner models offset the impact on overall fleet vehicle sales data collated by industry body Society of Indian Automobile Manufacturers (SIAM) show hybrid vehicle sales rose 18% year-onyear to 105,000 units in FY25. Electric vehicle sales, too, grew at a similar pace to 118,000 units, largely driven by new, more affordable models introduced by Tata Motors, JSW MG Motor and M& of petrol vehicles, meanwhile, dipped by 6.6% to 2,482,000 units. Industry watchers said the pace of growth in EV sales has moderated (from about 90% in FY24) despite central and state governments lining up several incentives — from reduced GST rate of 5%, waiver of registration charges and road taxes, and income tax benefits to enthuse customers to shift to EVs. They mostly blame it on the lack of adequate charging infrastructure. Thus, buyers looking to save on fuel costs are increasingly opting for strong hybrid Maruti Suzuki is set to take the covers off a hybrid SUV (codenamed Y17) ahead of the festive season this year, its Korean rivals Hyundai and Kia are set to drive in their first strong hybrid models next year, industry insiders MG Motor is examining plug-in hybrid vehicles for launch in India. Industry insiders said homegrown M&M, which so far has been betting big on born EVs, too, is developing a strong hybrid vehicle for launch in 2027. 'It is heartening to note that both BEVs and strong hybrids are growing well,' said Rahul Bharti, senior executive officer at Maruti Suzuki. 'SHEVs (strong hybrids) also enhance energy efficiency and reduce CO2 significantly over pure petrol/ diesel vehicles.' Mahindra also is planning to drive in a hybrid version of XUV 3XO, a senior industry executive aware of the company's plans said.
Economic Times
09-07-2025
- Automotive
- Economic Times
Don't run small cars off the road: Why India's emission rules hurt the cars we actually need
Agencies Corporate Average Fuel Efficiency (CAFE) norms are back in focus - this time for what they leave out. The proposed CAFE 3, set for 2027-28, aims to cut passenger vehicle CO₂ emissions to 91-95 g/km from around 113 g/km under CAFE 2. But concerns are rising that stricter fleet averages could hurt small, fuel-efficient cars while favouring pricier models with electrified variants, undermining affordability and mass CAFE framework is based on older European models, which tightens CO₂ emission targets as the weight of the car decreases. This means larger, heavier vehicles - despite consuming more fuel and emitting more CO₂ - are given relaxed targets, while smaller and more fuel-efficient cars are saddled with disproportionately tighter targets. This is in sharp contrast to how the rest of the world operates: US, China and South Korea follow a piecewise linear model, in which the line becomes horizontal for smaller, lightweight cars. Japan adopts a quadratic curve, which softens at the lower-weight range. Europe has corrected its mistake and now has a negative slope for the CAFE line, which means CO₂ targets for heavier, bigger cars are tighter than those for lighter, smaller ones. These regulatory structures are rooted in practicality, equity and environmental contrary CAFE model can have serious on-ground implications. For many Indian households, a small car is not a luxury - it's a move toward dignity, convenience and road safety. A family using a two-wheeler bears the vagaries of weather. What they need is a four-wheeled solution that is covered, safe, reliable and affordable. With over 25 cr two-wheelers on our roads today, ensuring this shift is a national imperative. Two-wheeler riders account for 45% of road fatalities in India. A safe, affordable car could be life-changing for them - but is increasingly out of financial reach, with even the entry-level car price rising from about ₹2.5 lakh till about six years ago to about ₹5 lakh today. It is not just about regulations but also about recognising the role small cars play in national development. Historically, in the journey of most nations transforming from developing to developed status, small cars have driven mass motorisation, expanded access to jobs and catalysed industrial growth. They offer a cleaner, safer and more inclusive form of mobility. Lightweight, fuel-efficient and less taxing on urban infrastructure, small cars have served not just individuals but the economy. Unfortunately, India appears to be abandoning this path. Entry-level car sales have declined by 77% in the past eight years due to a combination of high taxation, rising insurance and compliance costs, and increasingly stringent regulations. With the proposed CAFE norms applying harsher targets to small cars, this segment risks further erosion. This is a systemic failure to safeguard equitable access to safe personal transport. We can think of modernising small cars, but we should never kill them. There's also an environmental contradiction at play. GoI's Mission LiFE initiative rightly emphasises mindful consumption, efficient use of resources and sustainable living. Small cars use fewer raw materials, consume less fuel, emit lower CO₂ and cause less wear on must adopt a regulatory and fiscal approach that recognises small cars as a distinct category - with lower taxation and easier compliance norms. If the regulatory burden continues to rise, we risk shutting out the majority of Indians from the mobility objective of CAFE is to reduce fuel consumption and CO₂ emissions. But failing to protect vehicles that do both is not just ironic - it is environmentally and scientifically OEMs must rise above individual commercial interests and support a regulatory course correction that serves the national interest. An insensitive approach to the mass segment cannot steer the future of India's mobility. It demands unified resolve, long-term thinking and policy alignment with the needs of our people. The writer is former president, Society of Indian Automobile Manufacturers (Siam) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Newton vs. industry: Inside new norms that want your car to be more fuel-efficient India's gas dream runs on old pipes. Can a European fix unclog the future? Engine fuel switches or something else? 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