Hybrid vehicles complement EV sales growth in India

New Delhi: Hybrid vehicles have complemented the growth of electric vehicle sales in India rather than competing with the latter, according to a report by HSBC Global Research.

Reiterating that the Indian automotive landscape will remain a multi-powertrain industry over the medium to long term, HSBC Global Research said hybrids, CNGs, and biofuels are practical medium- to long-term solutions, while the country moves towards eventual electrification. “We think Strong Hybrid Electric Vehicles (SHEVs) and Battery Electric Vehicles (BEVs) are not cannibalising each other but, rather, are attracting different sets of customers,” the report said. In states where incentives are offered for SHEVs, BEV sales have also seen strong growth, it added.

“In FY25, the growth in EV sales was similar to the growth in SHEV sales, despite incentives being offered on SHEVs by Uttar Pradesh, the largest PV-selling state in India. This trend suggests that SHEV adoption is having a positive effect on BEV sales,” the report pointed out. Asserting that the perception that promoting SHEVs will hinder EV adoption is misplaced.