EVs vs Hybrids: Which will have the stronger year?

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Although 2022 was the year of EV ascendance, it also marked the return of the “strong hybrid”. The term is used almost exclusively in Indian parlance to describe what is otherwise known as a self-charging hybrid, featuring an on-board lithium-ion battery that supplements the power provided by a petrol engine.

Last year saw an unprecedented number of hybrid launches, with the Toyota Innova Hycross becoming the fourth strong-hybrid launch of 2022. Which begs the question? What are we likely to see launched this year?

Going by their presence at Auto Expo 2023, it appears that EVs will once again dominate the launch calendar. That isn’t to say hybrids didn’t enjoy a strong presence at the exp. In a surprising turn of events, MG Motors chose to display its globally acclaimed plug-in hybrid eHS, while having a few other ones decorate its stalls. The message from MG Motors’ MD Rajeev Chaba was clear: the brand has plenty of plug-in hybrid technology already in production and ready to be deployed, should policies in India prove conducive.

It’s a sentiment echoed by Hyundai Motors India MD Unsoo Kim, who stated at a round table discussion that should there be a demand in the market, Hyundai is ready to adapt to whichever technology proves popular, be it EVs or hybrid tech.

These statements, however, are in sharp contrast with those by the likes of Tata Motors and Mahindra, both home-grown brands, which, in a bid to meet the government’s deadline for ICE engines, have doubled-down on developing EVs and plan to continue doing so.

With the exception of its LX model, Lexus is the only brand in the country to see a line-up exclusively comprising hybrid vehicles. That said, with fuel efficiency and long-distance driveability being central to the appeal of the hybrid powertrain, the technology has proven to be unpopular in the luxury segment. If anything, hybrids have emerged as a new alternative to diesel powertrains in segments where fuel efficiency is key, thereby keeping most of the big hybrid launches of 2022 under the sub Rs 30 lakh bracket.

So, what advantages, if any, do self-charging hybrids bring to the table that electric cars do not?

Range and price

The chief advantage with self-charging hybrids is that the battery can be recharged using regenerative braking, and does not rely on an external power source. The disadvantage is that self-charging hybrids, such as the Honda City eHEV, the Maruti Suzuki Grand Vitara and the Toyota Innova Hycross, all feature batteries that aren’t large enough to run on electric power alone for a prolonged period. The self-charging hybrid loses charge as quickly as it recovers it, but takes care of the more mundane aspects of daily driving, like crawling through traffic, start-stop functions etc, thereby improving the car’s overall fuel efficiency.

But the single biggest advantage that a hybrid car has over its electric counterpart is that it is free of range anxiety and can be driven across states without the consumer being on the lookout for a charging station. Most public charging stations in the country have 25kW to 30kW chargers requiring at least an hour of fast charging before the EV is ready to travel a long distance. The other big advantage is that given the higher purchasing cost of an EV, a hybrid powertrain proves to be a cheaper alternative.

EV advantages

More expensive though an EV may be, it comes with much lower ownership costs. Given that an EV powertrain has fewer components, it is both cheaper and easier to maintain. In addition, an EV’s instantaneous torque delivery means EVs are more efficient performers, which is the primary reason most brands other than Japanese carmakers such as Toyota, Honda and Maruti Suzuki have focussed entirely on electric vehicles. The latter will, in all likelihood, bring the Brezza Hybrid to the market this year, making it the most affordable hybrid vehicle in the country.

And this is primarily because none of these brands have an existing EV alternative to their flagship products. Adding a relatively small lithium-ion battery to an existing petrol powertrain is a far more cost-effective exercise than retrofitting an ICE platform with a completely electric powertrain.

However, Tata Motors, which already commands 85% of the EV market share, has made it very clear that it won’t be focussing on developing hybrid powertrains at all. Even Citroen, which attempted to crack the entry-level car market with the C3 hatchback, will soon be launching its budget EV counterpart.

GST woes and a case for the plug-in hybrid

That isn’t to say that viable hybrid alternatives do not exist outside the Indian market. In a recent interaction with Moneycontrol, Mercedes-Benz India’s newly appointed MD Santosh Iyer admitted that “plug-in hybrid counterparts to the more popular line of cars are there in the brand’s international portfolio” and that, should the upcoming budget lower the existing 43 per cent tax to 5 per cent, as is the case with EVs (mild hybrids get a 23 per cent GST slab) Mercedes-Benz India’s upcoming launches will be accompanied by a plug-in hybrid alternative.

The plug-in hybrid has been the missing link from India’s EV-hybrid equation. Presumably because it’s so clearly the winning combination, the Central government felt its presence in the market would prove counterproductive to its EV push, given that plug-in hybrids come with a much larger electric battery, which can run on electric power alone for a good sub-100 km. And should you run out of battery power on the highway, you’re free to use the petrol or diesel powertrain to complete the remainder of your journey.

Plug-in hybrids have a far lower environmental impact and do not rely on the patchwork public charging infrastructure to continue running. In fact, plug-in hybrids are the most effective bridge to pure-EV tech, and go a long way in helping convert most ICE loyalists to EV technology.

When battery prices come down, and the price parity between EVs and ICE cars is greater, customers will flock to EVs, having sampled hassle-free usage and ownership with the plug-in hybrid.

However, the existing GST bracket makes it impossible for brands to bring in plug-in hybrid counterparts, explaining their absence from the 2023 Auto Expo. With parliamentary committees already set up for the consideration of both hybrids, or at least plug-in versions enjoying the same 5 per cent GST as pure EVs, all eyes are on the upcoming Union Budget to see just what the fate of hybrids will be in India.