The tax waiver will be valid until October 2025. It’s strategically designed to spur demand for hybrid vehicles without requiring a large allocation of government funds to subsidize their registration.
In a first, the Uttar Pradesh (UP) government has announced a comprehensive waiver of road tax on hybrid cars – a move aimed at encouraging the adoption of more eco-friendly vehicles and reducing the environmental impact of traditional gasoline and diesel-powered cars. But such a move is considered a remote possibility in AP and Telangana, said the transport officials. The decision of the UP government aligns with its existing policy for fully electric vehicles (EVs), which already enjoy similar tax benefits.
The 100% Road Tax Waiver
Effective from July 1, 2024, the UP government is offering a 100% tax exemption on registration fees for various types of hybrid vehicles: Hybrid Electric Vehicles (HEVs), Strong Hybrid Vehicles, Plug-in Hybrid Electric Vehicles (PHEVs),
Series Hybrid Electric Vehicles, Series-Parallel Hybrid Electric Vehicles.
Cost Parity with Petrol Cars:
By waiving the registration tax, the state aims to bring the cost of hybrid cars almost on par with those running on petrol. This makes hybrid vehicles a more attractive option for consumers, who will now find these eco-friendly cars more affordable. Popular automakers like Maruti Suzuki (known for models like the Grand Vitara) and Toyota (with efficient hybrid technology in models like the Innova Hy Cross and Urban Cruiser Hyryder) are expected to benefit significantly from this decision- and that’s excellent news for both the environment and potential car buyers!
Savings for Buyers:
The average registration cost for hybrid trims of the Grand Vitara and Urban Cruiser Hyryder in UP is close to Rs 1.80 lakh. For buyers of the Innova HyCross and Invicto, the savings could be up to Rs 3 lakh, depending on the variant. These reduced on-road prices are likely to make hybrid vehicles more appealing to a broader audience.
Policy Duration:
The tax waiver will be valid until October 2025. It’s strategically designed to spur demand for hybrid vehicles without requiring a large allocation of government funds to subsidize their registration.
Environmental Impact:
By making hybrid vehicles more affordable, the UP government hopes to see increased adoption, contributing to cleaner air and a healthier environment. This initiative aligns with broader efforts to combat pollution and promote sustainable transportation solutions.
Industry Implications:
The positive response from automakers suggests that the industry is ready to embrace this shift toward sustainable transportation. It could set a precedent for other states to follow, potentially leading to a nationwide push for hybrid vehicles. Manufacturers may invest more in hybrid technology and expand their range of eco-friendly vehicles.
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