The decision was taken after a meeting between the Uttar Pradesh Chief Secretary and representatives of major automobile companies including Hyundai, Tata Motors, Bajaj Auto, Maruti, Mahindra, Honda Cars and Kia Motors.
The meeting was convened to address concerns raised by these manufacturers regarding the state government’s Electric Vehicle (EV) and Hybrid Policy.
Senior government officials said that despite the implementation of road tax exemption for hybrid cars by the Uttar Pradesh Regional Transport Office (RTO) in June 2024, there has been no significant impact on sales of electric vehicles, people familiar with the matter said.
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Officials also said the policy ecosystem remains dynamic and the government is open to revisiting the matter if there are substantial changes in sales trends of electric and hybrid vehicles in the state, people familiar with the matter said.
The Uttar Pradesh government has announced a complete waiver of registration tax for powerful hybrid cars, which could potentially save customers up to ₹ 3.50 lakh on eligible vehicles.
This policy benefits companies such as Maruti Suzuki India (MSIL), Honda Cars India (HCIL) and Toyota Kirloskar Motor (TKM), and applies to hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV). This directive, issued on July 5, aims to promote the adoption of hybrid vehicles in Uttar Pradesh.
UP levies an 8% road tax on vehicles priced below Rs 10 lakh and a 10% road tax on vehicles priced above Rs 10 lakh. The exemption from registration tax offers significant financial savings to buyers, making these vehicles more affordable.
For instance, the Maruti Suzuki Invicto and Toyota Innova Hycross could yield savings of over Rs 300,000. On the other hand, the Maruti Suzuki Grand Vitara, Toyota Urban Cruiser Hyryder and Honda City could yield savings of over Rs 200,000.
Both HEVs and PHEVs use an internal combustion engine and an electric motor. The main difference is that PHEVs have a larger battery that requires external charging, allowing them to run on electric power alone for longer distances.
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