Given its high cost, are hybrids relevant in India?
Rajat Dhawan: I would look at it from two perspectives. First, from the scale of the market. We have about a million units in cars, which is one-fourth of China, and much lower than developed markets. Second, what do Indian customers really want? I hold a very conservative outlook for the launch and offtake of hybrids over the next 7-10 years. Will hybrids still be attractive if governments worldwide remove the tax benefits they enjoy? Zielke: Consumers are attracted to these technologies because of the incentives. But their environmental impact is not universally viewed as strongly positive. There is a sizeable group that believes that, under certain conditions, the benefits may be limited. I am not sure that such a technology should rely on government subsidies and incentives to make it in the market. Japanese manufacturers are far ahead in terms of hybrid technology and market share of hybrids. Toyota, for example, sells two out of every three hybrids sold. Why are American manufact
