In an exciting move on Tuesday, the Uttar Pradesh government announced a 100% waiver on registration fees for strong hybrid and plug-in hybrid vehicles. This decision is set to make hybrid cars up to โ‚น3.5 lakh cheaper in the state, making electrified vehicles significantly more affordable for many consumers.

๐Ÿ“ˆ Expected Increase in Hybrid Car Sales:

This initiative is likely to boost the sales and demand for hybrid cars. Interestingly, this announcement comes amid ongoing debates in the auto industry regarding tax relief for hybrid vehicles.

While many automakers, like Toyota, advocate for a reduction in GST rates on hybrid cars, others, such as Tata Motors, oppose this demand.

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๐ŸŒ Impact on Other States:

Maruti Suzuki India’s Chairman, R.C. Bhargava, praised the UP government’s decision, stating that it acknowledges the need for diverse technologies to reduce carbon emissions and oil imports. He added that this move recognizes the importance of hybrid vehicles in reducing emissions and may inspire other states to consider similar proposals.

๐Ÿ›ฃ๏ธ Not Just Electric Cars:

Bhargava emphasized that electric cars are not the only solution; hybrid vehicles offer effective technology to address environmental concerns. Toyota has echoed similar sentiments in the past. With this step, cars like the Maruti Suzuki Grand Vitara, Toyota Innova Hycross, and Urban Cruiser Hyryder, equipped with strong hybrid technology, will become more affordable for customers in Uttar Pradesh.

โš™๏ธ How Do Hybrid Vehicles Work?

Hybrid vehicles are powered by an internal combustion engine paired with one or more electric motors that utilize energy stored in batteries. Currently, hybrid vehicles in India face a total tax burden of 43%, including GST, while battery electric vehicles are taxed at around 5%.

This tax disparity makes hybrid cars significantly more expensive than electric vehicles, despite hybrid models emitting less pollution than their pure petrol or diesel counterparts.

๐Ÿท๏ธ Tax on Hybrid Cars:

Vehicle Type Total Tax Burden (%)
Hybrid Vehicles 43
Battery Electric Vehicles 5

The tax burden on hybrid cars includes GST, making them costlier compared to electric vehicles, even though hybrids emit less pollution compared to their petrol or diesel counterparts.

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