UP Slashes Road Tax On Strong Hybrid, Plug-in Hybrid Electric Cars

In a significant move towards promoting eco-friendly transportation, the Uttar Pradesh government has announced a waiver of road tax on hybrid cars. This policy aims to encourage the adoption of greener vehicles and reduce the environmental impact of traditional gasoline and diesel-powered cars. Leading automakers Maruti Suzuki and Toyota are expected to benefit significantly from this decision. The exact quantum of reduction in the taxes is not revealed in the notification. However, reports have that a 100 per cent rebate is being offered.

Maruti Suzuki, with its popular hybrid models like the Grand Vitara, and Toyota, known for its efficient hybrid technology in models such as the Innova Hycross and Urban Cruiser Hyryder, stand to see increased sales and customer interest. The tax waiver reduces the overall cost of ownership for consumers, making hybrid vehicles a more attractive option in the market.

The average registration cost for the hybrid trims of the Grand Vitara and Urban Cruiser Hyryder is close to Rs 1.80 lakh in UP. Thus, a significant cut in the on-road prices of these SUVs will be observed. The Innova Hycross and Invicto buyers will benefit with a cut of up to Rs 3 lakh in the on-road prices, depending on the variant.

As this is an amendment to the state’s existing EV policy, the relaxation in registration cost will be valid till October 2025. Also, the overall demand for hybrid vehicles isn’t very high across the country. Subsequently, the government will not have to allocate a large budget to subsidise the registration of strong hybrid vehicles and PHEVs in UP.

Kunal Behl, Vice President, Marketing & Sales, Honda Cars India Ltd, said, “Waving off 100% road tax on strong hybrid vehicles is a milestone decision by the Uttar Pradesh government which will encourage adoption of these environment friendly vehicles.   At Honda Cars India, we welcome this move, as it will undoubtedly attract a larger set of customers to join the nation’s green mobility mission. This forward-thinking decision will revolutionize the adoption of sustainable transportation in the state. Customers can now opt for eco-friendly hybrid vehicles like our City e:HEV in more affordable manner. This is also aligned with our global commitment to sustainable mobility and our global vision of achieving zero carbon emissions by 2050.”

This initiative aligns with the state’s broader efforts to combat pollution and promote sustainable transportation solutions. By making hybrid vehicles more affordable, the UP government hopes to see a substantial rise in their adoption, contributing to cleaner air and a healthier environment.

The tax waiver is also expected to stimulate the automotive market, providing a boost to the hybrid car segment and encouraging other manufacturers to introduce more eco-friendly models. This progressive step marks a significant milestone in Uttar Pradesh’s journey towards a greener future.

The move could soon be followed by other states, thereby giving a strong push to hybrid vehicles, which are often considered the sustainable substitute for ICE and battery-electric vehicles. Furthermore, it will push other carmakers to join the hybrid bandwagon.