Big savings for car buyers: Uttar Pradesh government scraps registration tax on strong hybrid cars

In a significant boost for green vehicles, the Uttar Pradesh government has reportedly decided to waive the registration tax on strong hybrid cars. According to The Hindu Business Line, the government, through a July circular, implemented a policy to give a 100 percent waiver on the registration fee of strong hybrid vehicles with immediate effect.

This move will primarily benefit manufacturers like Maruti Suzuki, Toyota Kirloskar Motor, and Honda Cars India. As per the report, customers can save up to Rs 3.5 lakh.

Uttar Pradesh levies an 8 percent road tax on vehicles priced below Rs 10 lakh and a 10 percent tax on vehicles priced above Rs 10 lakh (ex-showroom). The road tax waiver, however, is not expected to significantly impact the state exchequer due to the currently low sales of hybrid vehicles.

Maruti currently sells the Grand Vitara and Invicto hybrid cars, while Toyota offers the Hyryder and Innova Hycross. Honda has the City hybrid.

Hybrid vehicle sales have been gradually gaining traction due to factors such as the ease of owning hybrid vehicles, which do not require dedicated charging infrastructure like EVs, better mileage compared to petrol cars, and lower acquisition costs.

Last year, the state announced a three-year exemption from tax and registration fees for the purchase of EVs. Additionally, this exemption will be valid for five years for EVs manufactured within the state.

The government has also relaxed the upper maximum expenditure limit on the purchase of vehicles.