The Indian government is pleasing the hybrid vehicles with a cut on duty. This is made to promote eco-friendly cars and encourage the makers, according to the Union Heavy Industries Minister. The move will be co-jointly decided by the Ministry with the Finance Ministry. The government is ready to analyse any suggestions from relevant corners, he said. He stressed that the increase in green cars will depend much on such financial flexibilities.

There should be a clear difference between hybrid and normal vehicles, he said. The current rate of 100% duty on imported hybrid and electric cars make them cost burden on the buyers. The target mooted by Automotive Mission Plan is on good acceleration, he said. The rough estimate of the auto industry by 2016 would be $145 billion needing an investment of $35-40 billion. He stressed further the need for both fuel efficiency and environment saving as the cause for good automobile growth.