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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
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
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.
Time of India
7 days ago
- Business
- Time of India
Flex Fuel and Electric to Sit at the Same Table in CAFÉ 3
The Centre is working on balancing regulations under the third edition of the Corporate Average Fuel Efficiency (CAFÉ 3) norms to encourage customer adoption of flex fuel and electric vehicles , minister for road, transport & highways (MoRTH) Nitin Gadkari said. This will help rein in crude imports and vehicular emissions. Explore courses from Top Institutes in Select a Course Category Leadership Artificial Intelligence Others Cybersecurity Operations Management MCA Design Thinking others healthcare Product Management Data Science Technology Data Analytics Degree Healthcare CXO PGDM Public Policy Project Management Data Science MBA Finance Digital Marketing Management Skills you'll gain: Duration: 12 Months IIM Kozhikode SEPO - IIMK CEO Programme India Starts on undefined Get Details Skills you'll gain: Strategic Thinking & Planning Competitive Advantage & Market Positioning Strategic Leadership & Decision-Making Change Management & Organizational Transformation Duration: 1 Year IIM Kozhikode IIMK Advanced Strategic Management Programme Starts on Mar 30, 2024 Get Details Skills you'll gain: Opportunities & Outlining Plans to use AI & ML Applying Data-Driven Business Innovation Best Practices Changing Culture to Integrate AI-Enabled Technologies Ethics, Privacy and Regulations in AI & ML Duration: 20 Weeks Indian School of Business ISB Leadership in AI Starts on May 14, 2024 Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode Advanced Strategic Management Programme Starts on undefined Get Details Skills you'll gain: Duration: 22 Weeks Indian School of Business SEPO - ISB Venture Capital & Private Equity India Starts on undefined Get Details Skills you'll gain: Critical Thinking & Decision-Making Skills Power of Emerging Technologies Innovation and Drive Organizational Change Fostering a Culture of Innovation Duration: 9 Months MIT xPRO MIT Technology Leadership and Innovation Starts on May 14, 2024 Get Details Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML SLP India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Indore Executive Programme in Business Management Starts on undefined Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode Senior Management Programme Starts on undefined Get Details Skills you'll gain: Duration: 12 Weeks IIM Kozhikode CERT-IIMK EPIS Async India Starts on undefined Get Details Skills you'll gain: Duration: 18 Weeks 109820388 Strategic Marketing for Leaders: Leveraging AI for Growth Starts on undefined Get Details Skills you'll gain: Financial Accounting & Analysis Financial Instruments & Markets Corporate Finance & Valuation Investment Management & Banking Duration: 12 Months IIM Kozhikode IIMK Professional Certificate in Financial Analysis and Financial Management Starts on Mar 30, 2024 Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK-Women Leadership Programme INDIA Starts on undefined Get Details While CAFÉ norms have so far been skewed in favour of electric vehicles, the upcoming regulations will take into account the contribution of flex fuel and battery technologies in its new avatar. Flex fuel refers to blends, such as ethanol and petrol. 'The old CAFÉ norms were electric centric,' Gadkari said at an ET Roundtable on Thursday. 'The new CAFÉ 3 norms will balance both electric and flexi fuel engines.' A high-level meeting of top officials from the ministry of road transport and highways and ministry of power as well as the principal scientific adviser was held on Wednesday to firm up the norms. The minister had called for consultations with industry stakeholders earlier this month on the matter. CAFÉ 3 regulatory norms are set to come into effect from April 2027. A car's CO2 emissions are directly proportional to the amount of fuel it consumes. This means that some models can have higher emissions if the manufacturer has fuel-efficient vehicles in its portfolio. CAFÉ 3 regulations set fuel efficiency standards for car manufacturers with the aim of lowering fuel consumption and emissions. These norms apply to a manufacturer's entire model range, not individual models. While the industry is divided over the proposal on differential treatment to big and small cars under CAFÉ 3 norms, Gadkari said a final decision will align with the country's needs. 'Despite different lobbies working on it, we have to work in the interest of the country, keeping in mind pollution, cost, import and benefits for agriculture,' he said. Small cars don't have a separate standard under the existing CAFÉ 2 norms that are in force through March 2027. According to the existing rules, the average emissions of all passenger vehicles weighing less than 3,500 kg — including CNG, hybrids and electric vehicles — sold by each manufacturer should not be more than 113 grams of CO2 per kilometre. Vehicles in the local market currently run on petrol with a blend of 20% ethanol. While ethanol-blended fuel helps in reducing crude oil consumption, the lower calorific value of ethanol increases fuel consumption and therefore emissions, according to experts. According to Gadkari, trials are being held in the ministry of petroleum and natural gas on Russian technology that can raise the calorific value of ethanol to match that of petrol. This will eventually make 100% ethanol viable in the country, he said. Responding to a query on tightening emission norms, Gadkari said there had been much resistance when India decided to jump from BS-IV to BS-VI in 2020. 'India's emission norms are comparable to the world. Now there is talk of Euro VII. We are preparing for it,' he said. Commenting on the ban on end-of-life vehicles in the National Capital Region, Gadkari said, 'This should be addressed by taking a studied legal position on the issue,' but added that converting a petrol or diesel vehicle into CNG makes economic sense. He also said the Delhi government has the authority to make laws on the petrol-diesel vehicle ban, and take measures to address concerns regarding the legality of the move while keeping public health in mind. Petrol vehicles older than 15 years and diesel vehicles older than 10 aren't allowed in the national capital region (NCR), according to the National Green Tribunal order upheld by the Supreme Court. ON BIG VS SMALL CARS Despite different lobbies working on it, we have to work in the interest of the country, keeping in mind pollution, cost, import and benefits for agriculture.
