Bringing eco-friendly vehicles in India an issue due to lack of policy: Honda

Bringing eco-friendly automotive technologies to India in the absence of a clear policy framework is a challenge, according to Japanese auto major Honda.

The company which has announced that by 2030 two-thirds of its production will be non-conventional - either hybrid, plug-in, electric or fuel cell vehicles - said it will sell hybrid in India mostly as a technology demonstrator as the current high taxation has affected volumes severely.

Honda Cars India, the wholly-owned arm of Honda Motor Co, sells Honda Accord hybrid in India through import of completely built unit from Thailand. Sales of the model had suffered after price hike due to increased taxes after GST implementation last year.

"We (Honda) have declared that two-thirds of our production by 2030 will be non-conventional, either hybrid or plug-in or electric or fuel cell. So in line with that we have all the technologies available," Honda Cars India Ltd (HCIL) Senior VP and Director Marketing and Sales Rajesh Goel told PTI here.

He however added: "The issue is that everything entails investments. Unless the policy framework in India is clear for us to be able to decide what and when to get in terms of concrete plans, there is an issue."
Stating that Honda has been a front runner in the world in environmental-friendly technologies, he said,"we were the first company to bring a hybrid to India ten years ago with Civic."
Reiterating the significance of a clear road map, he said, "we have the global commitment of 2030. So including the Indian volume we eventually have to move towards that. Policy framework is very important step for us."
When asked about the impact of higher tax under GST on hybrid vehicles on sales of Honda Accord hybrid, Goel said, "we have suffered a dent in volumes as it has a huge impact on price."