Hybrid Cars Cheaper by Up to  ₹3.50 lakh as UP Govt Waves Registration Tax


Analysts predict that other states might follow Uttar Pradesh’s lead, potentially boosting vehicle sales and increasing the market share of luxury hybrids.

The Uttar Pradesh (UP) government has given a 100% waiver of registration tax for strong hybrid cars, potentially saving buyers up to ₹3.50 lakh. This decision is expected to help companies like Toyota Kirloskar Motor (TKM), Honda Cars India (HCIL) and Maruti Suzuki India (MSIL).

According to sources, UP is granting a “100 percent waiver on registration fees for strong hybrid electric vehicles and plug-in hybrid electric vehicles” through a decree published on July 5.
With the state currently charging eight percent road tax on vehicles under ₹10 lakh and ten percent on those above ₹10 lakh, this waiver represents a significant incentive.

UP is a major market for passenger vehicles, recording 2,36,097 units sold in the first half of this year, a 13.46 percent increase from the same period in 2023. In the second quarter alone, sales reached 1,09,712 units, up 10.26 percent from last year.

“This policy will boost strong hybrid vehicle sales in UP, even though the market is currently small. Most purchasers of such automobiles are not first-time owners. “This move by Chief Minister Yogi Adityanath is expected to benefit the auto industry,” said Ankit Raj, Chairperson of the Federation of Automobile Dealers Associations (FADA).

Earlier this year, the state also enacted a zero-registration fee policy for electric cars (EVs).

An MSIL dealer stated that, while current demand for powerful hybrids in UP is low, the new policy could boost sales.
Analysts believe that other states will follow UP’s lead, potentially increasing car sales and the market share of luxury hybrids.

Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) both use internal combustion engines and electric motors. The main distinction is that PHEVs have a larger battery that must be charged from an external source.

Maruti provides HEV technology in the Grand Vitara SUV and the Invicto MPV. Toyota offers similar technology in its Urban Cruiser Hyryder SUV and Innova Hycross MPV. Honda has incorporated HEV technology into its City e:HEV car.

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