Strong EV lineup pushes hybrids to the back seat; penetration hits 4.4%

EVs are taxed at 5% while hybrid vehicles attract an overall tax rate of 43%

Centre and state incentives have doubled the share of passenger electric vehicles (EVs) in India — from 2.2 per cent in 2024 to 4.4 per cent now — but hybrids remain stuck between 2 and 2.5 per cent. Automakers point out that despite the benefits of hybrid technology, a lack of government backing and few launches have kept the segment from gaining ground.

 

According to industry data based on wholesale dispatches, EV penetration, which was roughly 2.2 per cent in calendar year (CY) 2024, crossed 4.4 per cent in May 2025 (and has averaged 3.7 per cent so far in