Archive · 31 Aug 2026
Why JSW MG Motor May Bring EREV Technology to India
An EREV is a car that drives using electricity stored in a battery.
It also has a petrol engine, but that engine mainly works as a generator.
When the battery becomes low, the engine makes more electricity for the battery.
This can help the car travel farther without stopping to charge.
A PHEV is different because both its petrol engine and electric motor can directly help drive the car.
EVs currently have a 5% GST rate in India, while PHEVs have a 40% rate.
JSW MG Motor believes EREVs should receive treatment similar to EVs.
The company may consider bringing this technology to India.
An EREV uses a battery and electric motor, with a petrol engine serving as a backup generator.
Unlike a PHEV, an EREV’s drivetrain is connected only to the battery.
JSW MG Motor may bring REEV and HEV technology to India if needed.
EVs attract 5% GST in India, while PHEVs are taxed at 40%.
Jindal said EREVs should be classified and taxed like EVs, in line with a NITI Aayog recommendation.
- Who
- JSW MG Motor and Jindal, who discussed possible EREV, REEV and HEV plans.
- What
- The company may bring extended-range electric vehicle technology to India and wants EREVs treated like EVs for taxation.
- When
- The comments were made during the launch of the MG Hector Tomahawk EV and PHEV.
- Where
- India.
- Why
- EREVs could provide electric driving with petrol-powered backup generation, while EV-equivalent taxation could make them more affordable.
EREV Should Receive EV Treatment
Current Hybrid Tax Treatment
Tax classification
EREV Should Receive EV Treatment
Jindal said an EREV should be considered an EV because its battery drives the car and the petrol engine functions as a backup generator.
Current Hybrid Tax Treatment
PHEVs currently attract 40% GST, compared with 5% for EVs; the article does not state that the government has adopted a separate EREV tax category.
Affordability
EREV Should Receive EV Treatment
Jindal argued that differential treatment could make electrified vehicles more affordable and said the company hopes EREVs will be taxed like EVs.
Current Hybrid Tax Treatment
The article reports that the existing 40% PHEV tax contributed to the higher price of the Hector Tomahawk PHEV, with no announced reduction.
- EREV operation
- The battery powers the electric motor, while a petrol engine generates electricity when the battery is low.
- PHEV operation
- Both the internal-combustion engine and electric motor can power the drivetrain, depending on conditions and operating mode.
- EV GST
- Electric vehicles attract 5% GST in India.
- PHEV GST
- Plug-in hybrid vehicles attract 40% GST in India.
- MG Hector Tomahawk EV
- It has a 69.2 kWh battery, a claimed range of 517 km and a starting price of Rs 19.49 lakh ex-showroom.
- MG Hector Tomahawk PHEV
- Its starting price is Rs 25,69,800.
- Tax recommendation
- Jindal said NITI Aayog has recommended that EREVs be considered EVs.