Honda, the Japanese auto major, has launched a hybrid version of its popular Civic model in India, making it the first hybrid car to be marketed in the country. While this is good news for those who want to reduce the size of their carbon footprints, India's high import duty on completely built units — 104 per cent — means that the hybrid version of the Civic will retail at prices almost double that of the regular model.

The Civic hybrid may be eco-friendly, but its prohibitively high price in India makes it a niche product. It is interesting that, perhaps anticipating indigenous technological innovation, the government has already cut excise duty on hybrids made in India from 24 to 14 per cent, even though such cars are not made here. Since then, a group of engineering students has produced a prototype hybrid version of an Indian-made electric car.

But mass production of this prototype is a long way away. Instead of indulging in what seems like anticipatory protectionism, the government should embrace green technologies wherever they come from. This means taking steps to remove the hefty duty on hybrid imports. Hybrid cars in other countries, such as the US, are also imported. But governments in those countries do not charge high duties on such cars and instead encourage through subsidies. Unlike those nations, India's policies — unintentionally, perhaps — will discourage people from switching to hybrids.

The government should go a step further than merely lowering, or even abolishing, the duty on imported cars using green technologies. It should offer tax incentives to customers who are interested in buying such vehicles and offer concessions to manufacturers so that they may market their cars with ease. Already, high import duties have reportedly led to Toyota, the market leader in hybrid cars, shelving plans to enter the Indian market. While Honda is only now bringing its hybrid car to India, it is offering next-generation hydrogen-powered cars in several other countries.

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