Hybrid cars in get a price cut in UP with new tax policies

Car buyers in Uttar Pradesh (UP) who are considering hybrid vehicles can now rejoice as the state government has waived road tax on strong hybrid cars and SUVs. Effective immediately, the on-road prices of cars like the Toyota Hyryder SUV, Hycross MPV, Honda City hybrid, Maruti Grand Vitara, and Invicto will reduce considerably.

Tax Waiver for Strong Hybrid Cars and SUVs

• The UP government’s decision to waive road tax on the registration of strong hybrid cars and SUVs aims to promote eco-friendly vehicles and reduce the overall cost of ownership for consumers.
• The average registration cost for hybrid trims of popular models like the Toyota Hyryder SUV, Hycross MPV, Honda City hybrid, Maruti Grand Vitara, and Invicto was close to INR 1.80 lakh in UP. With the tax cut, buyers can expect a significant reduction in on-road prices. The estimated savings are in the range of INR 1 lakh to INR 3 lakh depending on the model and variant.

The relaxation comes as an amendment to the state’s current EV policy. This benefit will be valid to all strong hybrid cars. Customers buying PHEVs can avail this tax relaxation before October 2025.

Strong Hybrid Sales

The demand for strong hybrids has not been significant since they are considerably more expensive than their non-hybrid counter parts. However, strong hybrids are fuel efficient and environment friendly. However, the PHEVs are outselling pure EVs as they do not depend on charging infrastructure to run long distances. This means that the government might push people to buy PHEVs as EVs are not a popular choice among buyers.

Our Thoughts

We can say that the UP government is only the first state to bring this change. There will be more states that will follow suite in the coming moths. This will boost sales of the PHEVs in the coming days.

Also Read: Skoda planning to launch hybrid cars in India?