However, leading Indian auto companies like Mahindra and Mahindra (M&M) and Tata Motors, which are focusing on electric vehicles (EVs), have publicly opposed any move by the government to lower GST on hybrid cars or bring them on a par with BEVs.
REEVs are different from plug-in hybrids. The REEV is powered by an electric motor and has a battery that can range between 20 kilowatt hour (kWh) for crossover vehicles to 80 kWh for large premium SUVs. It has a small onboard combustion engine too. When the battery runs low below a threshold level, the engine works like a generator, producing electricity to charge the battery and extend the driving range and eliminate range anxiety issues.
Unlike a plug-in hybrid, the engine in the REEV is not connected to the car wheels, and only the electric motor turns on the wheels. In plug-in hybrids, the big difference is that the car can run both on electric as well as on internal combustion engine (ICE) independently.
Auto companies supporting the move say that China, which has 35 million new-energy vehicles, even with its 17.5 million chargers, did not depend only on BEVs in its new EV policy. Instead, it strategically promoted both plug-in hybrids and REEVs as stepping-stone technologies.
These auto companies say that India’s EV policy does not give explicit recognition to REEVs, though no REEV has been launched in the country so far. Although REEVs are electric-driven, ambiguity in GST classification risks placing them under higher tax slabs. They say REEVs are treated as ICE and GST on such vehicles is in the range of 18 per cent to 40 per cent, depending on the length of the car. They have argued that GST on REEVs should be pegged at 5 per cent, as such high tax rate undermines their affordability.
A senior executive of a global OEM, which is planning to bring in REEVs to the country, said: “REEVs perfectly suit India where our charging infrastructure will take some years to mature, but customers will be free from range anxiety — a big stumbling block to shift to electric. It cannot be penalised with a higher GST, as there is need for a transition phase to pure-play electric.”
Companies like JSW Motors, JSW-MG Motors India, Toyota Kirloskar, and Hyundai have already announced launches of plug-in hybrids in India. According to data from Benchmark Mineral Intelligence, REEV accounted for 12 per cent of China’s EV market sales in early 2016, from almost zero in 2009. And, these vehicles account for around 7 per cent of China’s total passenger vehicle sales that year.
There are many global auto companies having REEV models, and others are working on them. For instance, SAIC Motors, which runs a joint venture with JSW, has a range of REEVs in China for premium SUVs under the brand IM Motors.
Chery Automobiles, which has a technology tieup with JSW to bring in hybrids, has a range of REEVs with sub-brands like Jetour, Rely, Exceed, and iCar. In South Korea, Hyundai and its affiliates have taken a lead in developing new-generation REEVs in large SUVs and luxury vehicles, and for markets in China and North America. In Japan, which has been more cautious, Nissan has a similar technology like REEV on which they are launching models. And in Europe, Volkswagen is climbing the REEV bandwagon.
-
Range-extended electric vehicles (REEVs) run only on electricity but have a combustion engine that can recharge the battery and increase range
-
This is the reason its proponents say it differs from other hybrids
-
OEMs suggest India should replicate the China model where REEVs are already 12% of electric vehicle sales
 "ev")