UP’s hybrid car concessions not for all hybrids, conditions to be announced: Which cars are eligible?

The UP government will announce clarifications on which categories of hybrid cars are eligible for the state concession that waives registration charges.

Published on: Jul 15, 2024, 10:39:35 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Not all hybrid vehicles sold in Uttar Pradesh are applicable for benefits under the state government’s promotion scheme for hybrid vehicles, the Economic Times reported, adding that the state scheme would only apply to vehicles certified under the central government’s flagship Faster Adoption and Manufacturing of Electric Vehicles (FAME II) incentive programme, and that too, under certain conditions which are likely to be announced soon.

Currently, EVs are taxed at 5%, while hybrids are taxed as much as 43%, with petrol cars being taxed at 48%. (Raj K Raj/HT File Photo)

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The Uttar Pradesh Industries Department announced on July 5 that registration charges on strong hybrid vehicles will be waived to promote their use.

What are strong hybrid vehicles?

A strong hybrid is a hybrid vehicle that gives the on-tap option to run purely on the electric motor without the use of the engine, or switch to using the engine as well whenever required. Mild hybrids on the other hand, have the engine and the electric motor working together all the time.

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Uttar Pradesh is India’s second largest car market after Maharashtra, accounting for 11% of India’s total car sales, according to the report, which added that the share of hybrids is currently less than 1%, due to which, the waiver could reduce costs for strong hybrids anywhere between ₹1.5-3 lakh depending on the model, making them more attractive.

What are the other conditions for UP's hybrid registration charge waiver?

The road tax waiver could only be for hybrid cars costing up to ₹20 lakh, CNBC-TV18 reported, citing unnamed sources. HT couldn’t independently verify the information.

What are the hybrid cars that are applicable for UP's hybrid registration charge waiver?

Currently, there are only three strong hybrid cars sold in India that also cost under ₹20 lakh. These include the Toyota Urban Cruiser Hyryder, the Maruti Suzuki Grand Vitara, and the Honda City Hybrid.

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Among these, the Toyota Urban Cruiser Hyryder is the most affordable, costing ₹16.66 lakh ex-showroom. The strong hybrid variant of the Maruti Suzuki Grand Vitara starts at ₹18.32 lakh ex-showroom, and the cheapest Honda City hybrid costs 19.04 lakh ex-showroom.

How have EV manufacturers responded to UP's hybrid registration charge waiver?

EV manufacturers have been against the waiver, primarily because EV sales have been slowing down in India as well as globally, according to the Economic Times report, which added that currently, EVs are taxed at 5%, while hybrids are taxed as much as 43%, with petrol cars being taxed at 48%.

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HT News Desk
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