Uttar Pradesh hybrid car tax waiver to remain or end? ‘Incentives may change’

Industry sources present at the meeting said that the quantum of the incentive may be different for hybrids and EVs, it was reported.

The Uttar Pradesh government reportedly said it had no plans to rescind the full waiver of registration fees on plug-in and strong hybrid cars. The decision was taken following an intense hour-long meeting with major Indian automakers, Business Standard reported citing government and industry sources who took part in the meeting.

UP Chief Secretary Manoj Kumar Singh informed companies that the incentives given to plug-in and strong hybrid cars were intended to replace internal combustion engine (ICE) vehicles.

UP Chief Secretary Manoj Kumar Singh informed companies that the incentives given to plug-in and strong hybrid cars were intended to replace internal combustion engine (ICE) vehicles but this does not apply for electric cars. "A hybrid car customer will be replacing an ICE car customer," a source said as per the report.

Industry sources present at the meeting said that the quantum of the incentive may be different for hybrids and EVs. A senior official said as per the report, “A complete rollback of the registration tax waiver is unlikely, the quantum of waiver for hybrids and EVs may be different. This clarity will emerge later.”

On July 5, the Uttar Pradesh government issued an order waiving the 8-10 per cent registration tax on strong and plug-in hybrid cars which resulted to a reduction in the on-road prices of these cars by up to ₹4 lakh. Representatives from eight companies — Tata Motors, Hyundai, Kia, Mahindra & Mahindra, Maruti Suzuki, Toyota, Honda, and Bajaj — attended the meeting, the report added.

During the meeting, Tata Motors, Hyundai, Kia, and Mahindra & Mahindra strongly opposed the July 5 order but Maruti Suzuki, Toyota, Honda, and Bajaj supported it, the report claimed.