Hybrids may become the preferred choice for inter-city travel to counter range anxiety, while EVs will be used largely for city driving
Market data for the last three months (September - November 2023) shows that Indians bought more hybrid cars than fully-electric ones. 24,062 hybrids were sold over 21,455 electric, which indicates that hybrid vehicles offer better value for money — for the moment.
Fig. 1: The Suzuki Grand Vitara is a mild hybrid ICE car available in India | Image: Carwale
Advantages of Hybrid Vehicles
Mild hybrid vehicles offer lower running costs over their ICE counterparts. This is because of their higher fuel efficiency as they work together with the onboard IC engine to provide smoother acceleration and lower the fuel consumption. Full hybrids meanwhile are designed to run on electric power alone for short distances (usually less than 50 km).
Fig 2: Mild hybrid vs. full hybrid drivetrains | Image: Infineum Insight
Their surge is not surprising as petrol and diesel prices in India have risen by around 41% since 2019. The higher prices have raised the running costs of ICE cars considerably and while CNG kits are an alternative, they compromise the boot space in most cars. A notable exception is the Tata Tigor iCNG that integrates the twin CNG tanks underneath the luggage space. Nevertheless, hybrids lower the cost of running an ICE car without sacrificing its practicality. The owners do not have to deal with range anxiety, nor do they have to wait for hours to recharge the car.
Cost Considerations: Hybrids vs EVs
The average prices for hybrids are 20-30% higher than their ICE counterparts. Still, EVs cost up to twice more, which makes hybrids the preferred option. For instance, India’s popular automotive website cardekho.com lists the base price (ex-showroom) for the Tata Nexon (petrol) in New Delhi as Rs. 8.10 lakhs. The same car’s EV version, the Nexon EV, starts at Rs. 14.74 lakhs. That’s a Rs. 6.64 lakh price differential which may be unjustified for several buyers.
Fig. 3: The Renault Duster will launch its hybrid version in India in 2024 | Image: Carwale
Meanwhile the Suzuki Grand Vitara starts at Rs. 10.7 lakhs and its base version is a mild hybrid. Its price differential with the Nexon’s base version is much lower at Rs. 2.6 lakhs. This not only makes it a lot more tempting for the prospective buyer but will also help them recover the difference much sooner, depending upon how often the car is driven. Cardekho lists India’s most popular hybrid cars here.
Future Trends: Hybrid Market and EV Evolution
However, this is not to say that EVs are losing their momentum. India has sold 1.38 million EVs this year (up to December 6) and they account for 6.34 % of the total vehicle sales. That’s more than a hundred percent jump from last year and as their production picks up, their prices will drop and their sales will only improve. Thus, even as hybrids gain market share, the inflexion point with EVs is not too far away.
Within the next five years, EVs should be as affordable as hybrid cars, which will offer the customer a lot more choice in the powertrain — depending upon the use case. Hybrids may in fact become the preferred choice for inter-city travel to counter range anxiety, while the fully electric vehicles will be used largely for city driving. Either way, India’s private car ownership is set for a drop in carbon emissions, and this comes not a moment too soon.
