Debate raging in India over hybrids vs EV incentives
Indian state39;s tax waiver for hybrids spooks EV makers
State says reviewing objections, no decision on rollback

NEW DELHI, Aug 2 Reuters Hyundai, Kia Motors, Tata and Mahindra are lobbying India39;s most populous state not to offer incentives for hybrid cars, saying the move set to help rivals Toyota and Maruti Suzuki would hit targets on adopting electric cars and investment plans.

Four separate company letters to Uttar Pradesh, seen by Reuters, highlight the rivalry between automakers in a country where taxation is skewed in favour of EVs.

In a major lobbying win for Toyota, Uttar Pradesh, which alone accounts for 10 of India39;s car sales, waived registration taxes on some hybrid cars last month, making them 10 cheaper and resulting in savings of up to 5,200 on a Toyota Camry hybrid sedan, for instance.

Hyundai, Kia, Tata and Mahindra Mahindra have not publicly commented on Uttar Pradesh39;s move, but their letters to the state show they are opposing the tax waivers, citing the impact on India39;s goal of ensuring that 30 of new car sales are electric from 2030.

Hyundai, which is gearing up for a 3 billion Indian IPO, said in a July 12 letter that the move would derail electrification of transport, while Kia said promoting hybrid vehicles would negatively impact widespread EV adoption.

Mahindra39;s letter flagged concerns about disruption to the EV market.

Tata, which raised 1 billion from private…