JSW MG Motor India, fresh from introducing its first mass-market plug-in hybrid vehicle (PHEV) in the country, is now setting its sights on Extended-Range Electric Vehicles (EREVs). Parth Jindal, Chairman of the SAIC Motor-backed JSW MG Motor India, indicated last week that the company might bring an EREV to India next.
What Defines an Extended-Range Electric Vehicle (EREV)?
An EREV operates primarily on a battery-powered electric motor. Unlike a conventional hybrid, the petrol engine in an EREV does not directly power the wheels. Instead, it functions as a generator, kicking in only when the battery charge runs low to produce electricity and extend the vehicle's driving range. This design aims to offer the electric driving experience of a pure EV with the added reassurance of a petrol-powered backup for longer journeys.
EREVs vs. PHEVs: A Key Distinction
The core difference between an EREV and a PHEV lies in their drivetrain's connection. In a PHEV, both the internal combustion engine and the electric motor can directly power the vehicle's wheels, adapting to various driving conditions. Conversely, an EREV's drivetrain is solely connected to its battery and electric motor. As Jindal explained, the engine acts purely as a 'backup generator' to recharge the battery, ensuring the car is always driven by electric power.
The Taxation Debate: A Driving Factor
A significant motivation for JSW MG Motor's interest in EREVs stems from India's current taxation policy. While electric vehicles (EVs) are subject to a 5% Goods and Services Tax (GST), plug-in hybrid vehicles (PHEVs) face a much higher 40% GST. This disparity was evident in the pricing of the MG Hector Tomahawk EV and PHEV variants. The Hector Tomahawk EV, with a 69.2 kWh battery and a claimed 517 km range, starts from Rs 19.49 lakh (ex-showroom), whereas the Hector Tomahawk PHEV begins at Rs 25,69,800. Jindal highlighted that the substantial price difference is almost entirely due to tax discrepancies.
Jindal expressed his hope that EREVs would be classified and taxed on par with EVs, attracting the lower 5% GST. He noted that the NITI Aayog has also recommended that EREVs be considered EVs from a taxation perspective, advocating for differential tax treatment for new energy vehicles (NEVs) like PHEVs, which primarily operate in EV mode.
“In my view and in NITI Aayog’s recommendation to the government, EREV should be considered as an EV,” Jindal stated, adding, “We are hopeful that this is how it gets classified from a taxation point of view.”
This potential reclassification could make EREVs a more attractive and competitive option in the Indian automotive market, aligning with the country's push for greener transportation solutions.