UP eliminates registration fees for Hybrid Maruti, Toyota, and Honda vehicles

The UP government has reportedly stated that they will fully waive the registration tax for strong hybrid cars, which could save customers up to ₹3.50 lakh. The proposed decision will be advantageous for firms like Maruti Suzuki India (MSIL), Honda Cars India (HCIL), and Toyota Kirloskar Motor (TKM).

Reports state that the state is providing a "100 percent waiver on registration fees for strong hybrid electric vehicles and plug-in hybrid electric vehicles" through a directive released on July 5.

Charging eight percent road tax on vehicles under ₹10 lakh and ten percent on those above ₹10 lakh, UP offering this waiver is a notable benefit. BT was unable to confirm the reports on its own.

In the first six months of this year, UP saw a significant boost in sales of passenger vehicles, with 2,36,097 units sold, marking a 13.46 percent rise compared to the same period in 2023. In the second quarter alone, there were sales of 1,09,712 units, showing an increase of 10.26 percent compared to the previous year.

"This policy will increase sales of strong hybrid vehicles in UP, despite the market being limited in size. The majority of purchasers of these vehicles are not new owners. Ankit Raj, Chairperson of FADA, stated that Chief Minister Yogi Adityanath's decision will help the automotive industry.

At the beginning of this year, the state also introduced a policy of zero registration cost for electric vehicles (EVs).

HEVs and PHEVs use a combination of an internal combustion engine and an electric motor. PHEVs differ primarily in having a bigger battery that requires charging from an outside source.

Maruti provides HEV technology in the Grand Vitara SUV and the Invicto MPV. Toyota includes comparable technology in the Urban Cruiser Hyryder SUV and the Innova Hycross MPV. Honda has integrated HEV technology into the City e-model.