UP Government announced waiver on registration tax on hybrid cars, saving customers up to ₹3.50 lakh and boosting eco-friendly vehicle adoption.
In a major push towards promoting eco-friendly vehicles, the Uttar Pradesh (UP) government has announced a complete waiver on registration tax for strong hybrid cars. This initiative aims to make hybrid cars more affordable and accessible to consumers while encouraging the adoption of greener transportation options.
Key Highlights:
- 100% Waiver on Registration Tax: The UP government has implemented a full waiver on registration fees for strong hybrid and plug-in hybrid electric vehicles.
- Effective Immediately: The new policy, issued on July 5, is now in effect, offering immediate financial relief to hybrid car buyers.
- Significant Savings: Customers could save up to ₹3.50 lakh on registration fees, benefiting from the waiver.
- Boost for Automakers: Companies like Maruti Suzuki, Honda Cars India, and Toyota Kirloskar Motor are expected to see increased sales of their hybrid models.
- Growing Market: UP is one of India’s largest markets for passenger vehicles, with a 13.46% increase in sales in the first half of this year.
The Uttar Pradesh government has taken a significant step to encourage the adoption of environment-friendly vehicles by announcing a complete waiver of registration tax on strong hybrid cars. This new policy, effective from July 5, 2024, aims to make hybrid vehicles more affordable and boost their popularity among consumers.
According to The Hindu Businessline, this initiative is expected to benefit major automakers such as Maruti Suzuki India (MSIL), Honda Cars India (HCIL), and Toyota Kirloskar Motor (TKM). Customers purchasing popular hybrid models like Maruti Suzuki’s Grand Vitara and Invicto, Toyota’s Hyryder and Innova Hycross, and Honda’s City can save up to ₹3.50 lakh on registration fees.
The UP government previously levied an eight percent road tax on vehicles priced below ₹10 lakh and ten percent on those costing more than ₹10 lakh (on ex-showroom prices). The new policy waives these fees entirely for strong hybrid electric vehicles and plug-in hybrid electric vehicles, providing substantial financial relief to buyers.
This move follows an earlier policy implemented this year, which removed registration costs for electric vehicles (EVs) in the state. The Federation of Automobile Dealers Associations (FADA) reports that UP is one of the largest markets for passenger vehicles in India, with retail sales of 2,36,097 units in the first half of this year, marking a 13.46% increase from the same period in 2023. In the second quarter alone, UP recorded sales of 1,09,712 units, reflecting a 10.26% growth compared to last year.
In a related development, Hyundai Motor Group has announced plans to launch its first hybrid cars in India by 2026. This move comes as Hyundai and Kia, the group’s subsidiaries, shift their strategy to focus not just on electric vehicles but also on hybrid technology. Hyundai plans to introduce a hybrid SUV similar in size to its popular Creta model, with the launch expected between 2026 and 2027.
Hyundai Motor Group has stated its commitment to a future of electrified mobility and will optimize product strategies to suit each market. This pivot to hybrids is in response to the growing demand for hybrid technology in India, demonstrating the company’s adaptability and forward-thinking approach.
Overall, the UP government’s tax waiver is set to accelerate the adoption of hybrid vehicles, benefiting consumers, automakers, and the environment alike.
Also Read:
Finance Ministry Stands : No Change in Tax for Hybrid Cars, a Boost for Electric Vehicles
