Executives say EV makers are concerned that other states might follow Uttar Pradesh’s lead. | Photo: Bloomberg
India’s most populous state, Uttar Pradesh, will not reverse its decision to scrap registration taxes on hybrid cars, two sources said on Monday, a victory for Toyota but a blow to Tata Motors and Mahindra & Mahindra.
Hyundai, Kia Motors, Tata and Mahindra have lobbied the state, which accounts for 10 percent of India’s car sales, to scrap the incentive, arguing it would hamper India’s goals of adopting fully electric cars and affect investment plans.
At a meeting between state officials and automakers on Sunday, Uttar Pradesh Chief Secretary Manoj Kumar Singh said there would be no reversal of the decision, said an industry source and a state government official with direct knowledge.
Singh said during the meeting that “the status quo will be maintained,” one of the sources said.
Singh did not respond to calls seeking comment.
Executives say electric vehicle makers are concerned that other states could follow the example of Uttar Pradesh, where a waiver of registration tax on some hybrid cars last month made them 10 percent cheaper.
That could result in savings of up to $5,200 on a Toyota Camry hybrid sedan, for example, a major lobbying win for the Japanese automaker.
Representatives from Hyundai, Mahindra and Tata, which have sought to reverse the tax breaks, and Maruti and Toyota, which support the plan, attended Sunday’s meeting, one of the sources said.
Mahindra declined to comment. The other automakers reportedly at the meeting did not immediately respond to requests for comment.
India levies a 5% federal tax on electric vehicles, while hybrids pay 43%, just below the 48% levied on gasoline-powered vehicles. State road and registration taxes are additional and determined by local governments.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 12, 2024 | 15:40 IS
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.