The Uttar Pradesh government has announced a complete waiver of the registration tax for strong hybrid cars.
This decision, reported by The Hindu Business Line through a July circular, aims to promote green vehicles by providing a 100 percent waiver on registration fees for strong hybrid vehicles immediately upon implementation.
The move is expected to primarily benefit manufacturers such as Maruti Suzuki, Toyota Kirloskar Motor, and Honda Cars India, potentially saving customers up to Rs 3.5 lakh per vehicle. Uttar Pradesh currently applies an 8 percent road tax on vehicles priced below Rs 10 lakh and a 10 percent tax on those above Rs 10 lakh (ex-showroom). Despite these tax waivers, the impact on the state’s finances is anticipated to be minimal due to the current low sales volume of hybrid vehicles.
Maruti Suzuki currently offers models like the Grand Vitara and Invicto hybrids, Toyota provides the Hyryder and Innova Hycross hybrids, while Honda features the City hybrid in their lineup.
This initiative follows a previous announcement granting a three-year exemption from tax and registration fees for electric vehicles (EVs) and extends to five years for EVs manufactured within the state.
Hybrid vehicles have been gaining popularity due to their ease of ownership, competitive mileage compared to petrol cars, and lower initial costs, positioning them as an attractive alternative to traditional vehicles.
