No Registration Tax on Hybrid Electric Vehicles: UP Government

Lucknow, Jul 9 (KNN) In a landmark move aimed at promoting eco-friendly transportation, the Uttar Pradesh government has announced a complete waiver of registration tax on strong hybrid cars.

This decision, effective immediately, is poised to significantly impact the automotive market in India's most populous state and provide a substantial boost to manufacturers of hybrid vehicles.

The policy, circulated on July 5, extends a "100 per cent waiver on registration fee of strong hybrid electric vehicles and plug-in hybrid electric vehicles," according to sources cited by The Hindu Businessline.

This initiative follows an earlier policy that eliminated registration costs for electric vehicles (EVs), underlining the state's commitment to sustainable transportation.

The waiver is expected to benefit major automakers such as Maruti Suzuki India (MSIL), Honda Cars India (HCIL), and Toyota Kirloskar Motor (TKM). Popular hybrid models like Maruti Suzuki's Grand Vitara and Invicto, Toyota's Hyryder and Innova Hycross, and Honda's City are among those covered by the new policy.

For consumers, this move translates to significant savings. Previously, the state imposed an eight percent road tax on vehicles priced below Rs 10 lakh and ten percent on those above Rs 10 lakh (ex-showroom).

With the new waiver in place, potential buyers could save up to Rs 3.50 lakh on their hybrid vehicle purchases.

The timing of this policy is particularly noteworthy given Uttar Pradesh's position as one of India's largest markets for passenger vehicles.

According to data from the Federation of Automobile Dealers Associations (FADA), the state witnessed retail sales of 2,36,097 units in the first half of this year, marking a robust 13.46 per cent increase from the 2,08,092 units sold in the same period last year.

The second quarter alone saw sales of 1,09,712 units in Uttar Pradesh, representing a 10.26 per cent growth compared to the 99,501 units sold in the corresponding quarter of the previous year.

This progressive policy not only aligns with global efforts to reduce carbon emissions but also positions Uttar Pradesh at the forefront of India's transition to greener transportation.

As the automotive industry continues to evolve, such incentives are likely to play a crucial role in shaping consumer preferences and driving the adoption of environmentally friendly vehicles.

The move is expected to catalyse further investments in hybrid technology and potentially lead to increased manufacturing and job creation in the state's automotive sector.

(KNN Bureau)