High on hybrids? Uttar Pradesh makes big cut on registration fees. Check details

The cut in registration fees for strong hybrids like Innova Hycross and select Maruti Suzuki Grand Vitara models, as well as plug-in hybrids, will mak
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Hybrid vehicles
In a letter, the UP government announced a reduction in registration tax for strong hybrid and plug-in hybrid vehicles in the state.
Hybrid vehicles
In a letter, the UP government announced a reduction in registration tax for strong hybrid and plug-in hybrid vehicles in the state.

The government of Uttar Pradesh (UP) has taken a significant step to promote eco-friendly vehicles by completely waiving the registration fee for strong hybrid and plug-in hybrid cars. In a letter, the UP government announced a reduction in registration tax for strong hybrid and plug-in hybrid vehicles in the state.

This move comes amidst the ongoing debate about reducing GST on hybrid cars nationwide, a proposal previously rejected by the Finance Ministry in favour of electric vehicle (EV) sales. The UP government's decision comes at an interesting time. The sales data from September to November 2023 reveals that strong hybrid vehicles (24,026 units) outsold EVs (21,445 units) during that period. This suggests a potential "tipping point" where hybrids might become a more popular choice for eco-conscious consumers.

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Also Read : Hybrids vs EVs: where should government put its money

Hybrid cars get price cuts

Thanks to the UP government's policy shift, hybrid car buyers across various manufacturers can now enjoy significant price cuts. Toyota Urban Cruiser Hyryder hybrid sees a reduction of 1.67 lakh, with prices now ranging from 18.37 lakh to 22.25 lakh. The Innova Hycross hybrid benefits even more with a price drop of 3.11 lakh, bringing the new range to 28.93 lakh to 34.26 lakh.

Maruti Suzuki also joins the party, with the Grand Vitara hybrid becoming 1.98 lakh cheaper (new price range: 19.52 lakh - 21. 32 lakh). Similarly, the Maruti Suzuki Invicto hybrid boasts a price reduction of 2.88 lakh, with prices now starting at 26.71 lakh and reaching 31.07 lakh. Honda's City hybrid receives a slightly smaller price cut of 2 lakh, with a revised range of 22.31 lakh to 22.40 lakh.

Also Read : Hybrids or EV?: A major dilemma amongst global automotive players

The impact of the UP policy on other states remains to be seen. However, if more states follow suit and waive road tax on strong hybrids, it could significantly boost their sales and provide a viable alternative to EVs for some car buyers. Additionally, it will be interesting to observe whether this policy extends to luxury hybrid models like the Toyota Camry and Lexus range.

First Published Date: 09 Jul 2024, 14:57 PM IST
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