Tata Motors, Mahindra Push to Exclude Hybrids from Government Fleets: Report

Two of India’s largest automakers, Tata Motors and Mahindra & Mahindra, have raised objections to a government advisory that proposes including hybrid vehicles in official fleets, as per news reports. The companies have written to the Ministry of Heavy Industries, urging that government incentives and procurement policies remain focused solely on battery electric vehicles (EVs).

Govt Advisory Promotes Hybrids as "Cleaner Vehicles"

On May 2, 2025, the Commission for Air Quality Management (CAQM) issued an advisory recommending the use of strong hybrid vehicles in government fleets, particularly in Delhi and the National Capital Region. The advisory called hybrids “cleaner vehicles,” citing the need to reduce pollution from petrol and diesel vehicles in high-traffic areas.

Automakers Push Back

According to Reuters news, Tata Motors, Mahindra & Mahindra, and others, including JSW MG Motor, Hyundai Motor, and Kia Corp, have sent letters opposing the move. They argue that hybrids still depend on fossil fuels, unlike EVs, which produce 0 tailpipe emissions. These companies have requested that the government’s current EV-focused approach remain unchanged.

In its May 15, 2025, letter, Mahindra asked the ministry to “stay firmly focused only on EVs.” Tata also highlighted the potential impact on ongoing and future EV investments, stating that the advisory could send mixed signals to international investors.

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Risk of Policy Confusion

Automakers have pointed out that the advisory could create policy uncertainty. India’s current incentive schemes, including the Production-Linked Incentive (PLI) programme, are designed specifically for EVs. Industry representatives say that including hybrids may dilute these policies and confuse consumers and stakeholders.

According to official data, of the 847,544 government vehicles in use across India in 2022, only 5,384 were EVs, less than 1%.

EV Investments Underway

Tata has raised $1 billion from private equity firm TPG for its EV business. Mahindra’s EV unit is backed by Temasek and British International Investment. Hyundai has also committed over $500 million to EVs in India.

Conclusion

With carmakers planning over $10 billion in EV-related investments through 2030, the industry is calling for clearer, EV-only guidelines for public fleet adoption.

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