Toyota Motor is lobbying the Indian government to reduce taxes on hybrid vehicles by up to 21%, arguing that hybrids are less polluting than petrol cars. The automaker plans to expand production capacity in India to meet the rising demand for hybrids. However, the government has been focused on promoting electric vehicles (EVs) and offers incentives for EV production. Currently, India taxes EVs at 5%, while the levy on hybrids is as high as 43%. Toyota contends that the 5% differential is insufficient, given the environmental benefits and fuel efficiency of hybrids. The company’s letter to the government calls for a greater tax reduction to support hybrid adoption.