WHY INDIA WANTS HYBRIDS, NOT EVS

Hybrids beat EVs in sales as buyers take a fancy to mixed powertrains to get the best of both worlds.

- ASTHA ORIEL

NEW DELHI-BASED AMIT SHARMA test-drove at least 30 passenger vehicles with different powertrains before shifting from his diesel car to a strong hybrid in November last year. Considering the wide range of powertrains in the market, it was not an easy decision for him. But Sharma says Grand Vitara strong hybrid satisfies his penchant for exploring new technologies while retaining the comfort of the internal combustion engine (ICE).

Sharma is not an exception. Several buyers of hybrid vehicles Fortune India talked to say they are a stepping stone to new technology before transitioning to a full electric vehicle (EV). The trend is getting reflected in sales of models such as Maruti Suzuki Grand Vitara, Toyota Urban Cruiser Hyryder, Honda City Hybrid, Maruti Suzuki Invicto and Toyota Innova Hycross. Overall market share of hybrid vehicles rose from 0.5% in 2022 to 2% in 2023, according to industry data. In fact, hybrid vehicle sales surpassed EV sales at fag end of 2023. In September, October and November, hybrid vehicle sales stood at 8,529, 8,673 and 7,024 units, respectively. EV sales were 7,658, 7,024 and 6,763 units, respectively, during these months. This despite hybrids being more expensive than EVs. For example, the best-seller Grand Vitara strong hybrid costs ₹20.93-22.66 lakh ex-showroom in Delhi while Toyota Urban Cruiser Hyryder costs ₹18.69-20.19 lakh. Maruti Suzuki Invicto costs ₹25.03-28.70 lakh and Toyota Innova Hycross ₹25.72 lakh-30.04 lakh. In comparison, Tata Nexon EV costs ₹14.49-19.29 lakh and Tata Tiago EV ₹7.9911.89 lakh.

More Demand, More supply