New Delhi, May 21 || EV penetration in India has improved with new model launches over the last six months, and new model launches and government incentives will drive hybrid penetration growth in the near term, an HSBC report said on Wednesday.
Contrary to popular assumptions, hybrids are not currently competing with EVs, but rather, are complementary to them. For instance, in states with hybrid incentives, EVs have grown more even after incentives were announced, said HSBC Research in its note.
“We think India will remain a multi-powertrain industry over the medium to long term,” it stated.
Hybrids, CNGs and biofuels are practical medium- to long-term solutions, while the country moves towards eventual electrification.
“We think strong hybrid electric vehicles (SHEVs) and battery electric vehicles (BEVs) are not cannibalising each other but, rather, are attracting different sets of customers. In states where incentives are offered for SHEVs, BEV sales have also seen strong growth,” said the report.
In FY25, the growth in EV sales was similar to the growth in SHEV sales, despite incentives being offered on SHEVs by Uttar Pradesh, the largest PV selling state in India.