Toyota Kirloskar Motor (TKM) emphasizes the importance of merit-based tax relief for hybrid vehicles in India, urging the GST Council to align policies with national goals of energy self-reliance and carbon emission reduction. Currently, hybrid vehicles face a 28% GST along with a cess, resulting in a total tax of about 43%. Carmakers like Honda, Toyota, and Maruti Suzuki advocate for tax reductions on hybrids, highlighting their role in decarbonization. However, some, like Tata Motors and Mahindra & Mahindra, prioritize the transition to electric vehicles (EVs).