New Delhi, Dec. 20 -- Maruti Suzuki India Ltd has started work on its first full hybrid car, with the government finally signalling its intention to offer incentives for such vehicles, along with electric cars.

India's largest carmaker is working on greater localisation of parts for such vehicles while it prepares for the opening of a lithium-ion battery plant in Gujarat being built jointly by parent Suzuki Motor Corp. and Toyota Motor Corp.

Kenichi Ayukawa, managing director of Maruti, said on Wednesday that the company is expecting tax benefits from the Union government for hybrid cars. "We are pushing for localisation of components like lithium-ion batteries and others. We are already in the process of implementing the battery plant an...