Hybrid Heat: Auto giants bet big on India

Original Equipment Manufacturers (OEMs) in India are strategically investing in hybrid tech, balancing between internal combustion engines (ICE) and fully electric vehicles (EVs). Hybrid vehicles currently make up about 2 per cent of the market, almost equal to the EVs which are also around 2 per cent. According to several reports, hybrids could grow to 18-20 per cent market share, potentially mirroring Europe’s shift. Automakers such as Toyota, Maruti Suzuki, Honda, Hyundai, Volvo Car and BMW are actively working on hybrid tech. Hyundai plans its first hybrid Indian model by 2026–27, likely based on the Creta or a new 7-seater. Toyota’s strong-hybrid sales of models such as Innova Hycross, Urban Cruiser Hyryder, and Camry, rose 181 per cent YoY in April 2025, with Toyota commanding around 80 per cent of the segment. These moves signal a strategic calibration: hybrids serve as a practical step toward future EVs. The Hybrid Advantage: Fuel Efficiency & Cost Hybrids offer better fuel economy (often 35–45 per cent improvement) and cut CO₂ emissions by 25–30 per cent compared to pure petrol/diesel cars. They deliver immediate savings, important in a market where petrol often hovers around INR 100+ per litre. Plus, Hybrids don’t require charging stations, making them suitable for both congested cities and rural landscapes. Policy Gaps: Tax Anomalies & Industry Pushback Despite clear benefits, hybrids lag behind EVs