**Tax Incentives for Green Mobility Essential for Consumer Benefit, Says Toyota Kirloskar Motor Executive**
Vikram Gulati, the country head and executive vice president of Toyota Kirloskar Motor, emphasizes the importance of maintaining tax incentives for green mobility to benefit consumers. As the company continues to prioritize electric and ethanol-powered vehicles, Gulati argues that tax structures should align with societal and national goals, particularly the transition away from fossil fuels and the push for decarbonization and indigenization.
In an exclusive interview, Gulati pointed out that without a clear tax differentiation between petrol and flex-fuel vehicles, consumers may inadvertently face higher taxes on cleaner options. He stressed the need to ensure that consumers are not discouraged from adopting cleaner technologies.
Gulati noted that lower taxes would stimulate demand and attract greater investments in large-scale manufacturing, ultimately leading to reduced prices. He highlighted the positive impact of the 5% goods and services tax (GST) on electric vehicles, in contrast to the 18-28% GST on fossil fuel vehicles, which has significantly boosted sales of zero-emission vehicles. In 2024, India sold over 1.95 million electric vehicles, marking a 27% increase from the previous year.
Toyota’s commitment to cleaner vehicles includes offerings like the Mirai, a hydrogen fuel cell car, and plans to launch a new electric vehicle in collaboration with Suzuki Motor Corp in India. The company has also introduced the Innova HyCross, a flex-fuel vehicle.
While electric and flex-fuel vehicles are gaining traction, Gulati noted that the hydrogen fuel market remains in its early stages, hindered by limited infrastructure for storage and dispensing. He believes hydrogen will play a crucial role in advancing green mobility, particularly for larger vehicles. With approximately 95% of the Indian auto sector reliant on fossil fuels, the adoption of flex fuels like ethanol could significantly reduce carbon emissions and enhance energy self-reliance. Transitioning to a 20% ethanol-petrol blend could decrease India’s dependence on oil imports, benefiting the nation in the long run.
