Hybrid cars are gaining on EVs in India because they represent a gradual pathway to energy transition . Besides, EVs are still more expensive to manufacture, with research costs yet to be priced in and relatively immature supply chains. This situation will not change as we move up the hybrid technology tree. Additionally, its accelerated depreciation as energy generation and storage tech won't level out against internal combustion engines (ICE) on all three parameters. Tax breaks for hybrids could risk slowing the energy transition.

Source: Economic Times May 26, 2024 17:42 UTC