This new policy offers a full registration tax waiver on hybrid vehicles to reduce carbon emissions and lower oil imports. This waiver could cut hybrid vehicle costs by up to INR 3.5 lakh.
On Tuesday, RC Bhargava, Chairman of Maruti Suzuki India, emphasized the Uttar Pradesh government’s new policy initiative that provides a 100% registration tax waiver for hybrid vehicles. He pointed out that this move acknowledges the necessity of diverse technologies to address environmental concerns and oil dependency. Reports have revealed that this tax exemption will lead to a reduction in hybrid vehicle prices by as much as INR 3.5 lakh. Bhargava expressed his hope that this initiative by the UP government would encourage other states to adopt similar measures.
Bhargava further noted that the action taken by the UP government is the first instance of a state government acknowledging and addressing the need for diverse technologies to curb carbon emissions and reduce oil imports. He emphasized the importance of other effective technologies like hybrids, in addition to electric cars, for tackling environmental issues.
On the same day, Maruti Suzuki’s stock saw a significant surge, climbing 6.6% to close at INR 12,820.20 on the Bombay Stock Exchange (BSE). At its peak during the day, the stock price had increased by 7.72% to INR 12,955. On the National Stock Exchange (NSE), the shares ascended by 6.51% to INR 12,807, making Maruti Suzuki the top performer in both the Sensex and Nifty indices.
Hybrid vehicles combine an internal combustion engine with one or more electric motors that utilize energy stored in batteries. Notably, Toyota Kirloskar offers models like the Innova Hycross and the Urban Cruiser Hyryder featuring strong hybrid technology. Similarly, Maruti Suzuki markets versions of the Invicto and Grand Vitara equipped with robust hybrid systems. Honda also offers variants of its mid-sized sedan, the City, with self-charging hybrid technology.
At present, hybrid vehicles in India are subject to a total tax burden of 43%, which includes GST. In contrast, battery electric vehicles are taxed at approximately 5%.
