‘Cutting Emissions’: UP govt announces tax sops for Hybrid Vehicles

PTI, Jul 10, 2024, 5:44 PM IST

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New Delhi: Maruti Suzuki India Chairman RC Bhargava on Tuesday said the reported 100% registration waiver for hybrid vehicles by the Uttar Pradesh government recognises the fact that multiple technologies are required to reduce carbon emissions and oil imports.

According to reports, the Uttar Pradesh government has announced a 100% registration tax waiver on hybrid vehicles leading to a drop in prices of models by up to INR 3.5 lakh.

When contacted, Bhargava told PTI that the step taken by the UP government would also inspire other states to consider such proposals.

“The UP government action is the first instance where a state government has realised and acted on the fact that multiple technologies are required for reduction in carbon emissions and oil imports,” he stated.

Electric cars are not the only option, there are other effective technologies like hybrid cars to tackle the issue, Bhargava asserted.

On Tuesday, Maruti Suzuki shares jumped 6.6% to settle at INR 12,820.20 on the BSE. During the day, it soared 7.72% to INR 12,955.

At the NSE, it climbed 6.51% to INR 12,807. Maruti was the biggest gainer in the Sensex and Nifty pack.

Hybrid vehicles are powered by an internal combustion engine and one or more electric motors, which use energy stored in batteries.

Toyota Kirloskar sells Innova Hycross and Urban Cruiser Hyryder with strong hybrid technology while Maruti Suzuki also sells some trims of the Invicto and Grand Vitara with strong hybrid mechanisms.

Honda also sells some variants of its mid-sized sedan City with self-charging hybrid technology.

Currently, the total tax incidence on hybrid vehicles in the country is 43%, which is inclusive of GST, while battery electric vehicles attract a tax of about 5%.