Uttar Pradesh Waives Road Tax On Hybrid Cars

Uttar Pradesh Government abolishes road tax on strong hybrids

The government of Uttar Pradesh led by CM Yogi Adityanath has made a huge announcement. It has announced that the entire road tax on strong hybrid vehicles sold in the state has been abolished. This initiative will help in making the most popular strong hybrid MPV, Innova Hycross, more accessible to buyers. The MPV now gets discounts of up to Rs 3.3 lakh. Apart from these, all the other strong hybrid models also will benefit from this initiative. The Uttar Pradesh government led by chief minster Yogi Adityanath aims to encourage the adoption of hybrid technology in the state with this initiative.


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With this waiver, the Uttar Pradesh government will help in reducing the upfront cost of these strong hybrid vehicles. This initiative will also help in boosting the sales of strong hybrid models, including the popular ones from Toyota. These models are namely the Toyota Innova Hycross, Toyota Hyryder, and Toyota Camry.

With the road tax waived off, the Toyota Camry will become cheaper by Rs 4.4 lakh. Additionally, the popular mid-SUV Toyota Hyryder will also become more affordable by Rs 2 lakh. Lastly, the Toyota Innova Hycross, which as mentioned is currently the most sought after strong hybrid car in India, will become cheaper by Rs 3.3 lakh. Even the premium Toyota Vellfire qualifies for these savings. Transport Minister Nitin Gadkari – a proponent of lower taxation in GST – will be quite pleased with UP CM Yogi Adityanath’s move.

Other strong hybrid models will also become more affordable.

Apart from Toyota models, this tax waiver also extends to other strong hybrid vehicles as well. Cars such as the Maruti Suzuki Invicto, Grand Vitara, and Honda City Hybrid are also eligible for these discounts. This unique and first-of-its-kind initiative will help in promoting the adoption of hybrid technology across the state.

Why Uttar Pradesh is Taking This Step


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The Uttar Pradesh government initiative, as mentioned, will help in promoting hybrid vehicles in the country. It will firstly make hybrid vehicles look like a practical solution to reducing vehicular emissions. This is because they indeed contribute to cleaner air and a healthier environment.

Secondly, by making these cars more affordable, the government aims to increase their adoption. This will gradually reduce the dependence on traditional ICE vehicles. This move aligns with broader environmental goals. Hybrid cars, as we all are aware, are known for their superior fuel efficiency and lower emissions compared to conventional petrol or diesel vehicles.

Maruti Suzuki shares shoot up

Soon after the Uttar Pradesh government announced that it would be waiving off the road taxes for the strong hybrid vehicles. The share prices of Maruti Suzuki reached Rs 12,615. They were up by 5 percent after the announcement. Presently MSIL shares are trading at Rs 12,752. The primary reason behind this is that the company sells the popular strong hybrid model the Grand Vitara in India. It also sells the Invicto MPV as well.

Why Hybrids Make Sense

Uttar Pradesh Waives Road Tax On Hybrid Cars

In India, and most places in the world, there is a lack of charging infrastructure. Due to this, there is a bigger issue of range anxiety. So EVs are becoming slightly less popular amongst car buyers. Strong hybrids, on the other hand, do not rely on external charging, as their batteries are recharged through the petrol engine.

This makes them a more practical choice for Indian consumers who may not have easy access to charging stations. Additionally, strong hybrids deliver better fuel economy in both urban and highway conditions, making them cost-effective over the long term.

Unfair Taxation of Hybrids

Uttar Pradesh Waives Road Tax On Hybrid Cars

Currently, despite their benefits, strong hybrid vehicles are unfairly taxed in India. The current GST on hybrid cars is 48%, which is significantly higher than the 5% GST on EVs. This high tax rate makes them less affordable and attractive for average car buyers.

The Future of Hybrids in India

Uttar Pradesh Waives Road Tax On Hybrid Cars
Honda City Hybrid

Over the last few months, carmakers and buyers have increasingly recognized the potential of hybrid technology. Slowly, more consumers are now leaning towards eco-friendly and fuel-efficient options. Hence, automakers are investing in the development and promotion of hybrid models. It is believed that this trend is likely to grow as more states potentially follow Uttar Pradesh’s lead.