The southern state of Karnataka in India, home to Bengaluru's tech hub, is planning to introduce tax cuts and financial incentives for companies in the clean mobility sector. The draft policy includes a substantial tax reduction for hybrid cars, particularly benefiting Toyota, which has been advocating for such incentives at the national level. Karnataka, known for its high sales of electric vehicles, aims to reduce road tax and registration charges for hybrid cars under $30,000, potentially boosting the adoption of these vehicles. The policy targets clean mobility adoption, encompassing EVs, certain hybrids, and even hydrogen-based vehicles. While Karnataka's initiative aligns with the goal of reducing pollution and fuel imports, it has sparked a debate as Toyota's push for hybrids clashes with competitors like Tata Motors and Mahindra & Mahindra who prioritize EVs. Additionally, the state plans to offer incentives for capital investments in the EV sector, aiming to attract significant investments and boost manufacturing. The move reflects the broader trend in India, where states are competing to attract EV investments and incentives, in line with Prime Minister Narendra Modi's vision to increase the share of fully electric vehicles in car sales by 2030.