India: Hybrids fade as EVs, CNG surge, driven by tax and policy.

• Hybrid car market share in India is rapidly declining, falling to a 24-month low of 4.61% in November, nearly half the level of the previous year.
• Electric Vehicles (EVs) and Compressed Natural Gas (CNG) vehicles are gaining momentum, with EVs nearly doubling their share and CNG becoming the second-largest segment.
• Hybrids face a pricing disadvantage due to 40% GST, significantly higher than the 5% on EVs, and the withdrawal of state road tax waivers.
• Manufacturers like Maruti Suzuki and Toyota lobby for lower GST on hybrids, but domestic EV makers like Tata Motors oppose, advocating for zero-emission vehicle incentives.
• Hybrids are considered a "stopgap solution" for meeting CAFÉ norms, with stricter CAFÉ 3 norms in 2027 pushing manufacturers towards pure EVs.

Why It Matters: Your future car choices in India are increasingly EV or CNG, as hybrids lose market relevance.