Tata Motors urges India to keep hybrid tax as Toyota seeks cut -sources


FILE PHOTO: Tata Motors' Nexon and the electric vehicle Nexon.ev are seen parked for display outside a hotel ahead of its launch in New Delhi, India, September 14, 2023. REUTERS/Anushree Fadnavis/File Photo

NEW DELHI (Reuters) - India's top electric car maker Tata Motors is urging the government not to cut taxes on hybrid cars as they are more polluting than pure electrics, countering calls from Toyota for lower levies, according to three sources and a company letter.

India is promoting electric vehicles (EV) as part of Prime Minister Narendra Modi's drive to reduce pollution, taxing them at just 5%, while the levy on hybrids is as high as 43%, just below the 48% imposed on petrol cars.

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