Uttar Pradesh
No Registration Tax on Hybrid Cars
- 10 Jul 2024
- 2 min read
Why in News?
Recently, The Uttar Pradesh government has decided to waive the registration tax on strong hybrid cars. This decision is a significant boost for green vehicles.
Key Points
- This move will mainly benefit car manufacturers such as Maruti Suzuki, Toyota Kirloskar Motor, and Honda Cars India. Customers can save up to Rs 3.5 lakh.
- Uttar Pradesh imposes 8% road tax on vehicles under Rs 10 lakh and 10% tax on vehicles over Rs 10 lakh (ex-showroom).
- The road tax waiver is not expected to greatly affect state revenue because of low hybrid vehicle sales.
- Hybrid vehicle sales are gaining traction due to factors such as ease of ownership, not needing dedicated charging infrastructure like Electric Vehicles (EVs), better mileage than petrol cars, and lower acquisition costs.
- In 2023, The state announced a three-year tax and registration fee exemption for purchasing EVs, with a five-year exemption for EVs manufactured within the state.
Hybrid Vehicles
- Hybrid vehicles combine a traditional Internal Combustion Engine (ICE) with an Electric Propulsion system, allowing the vehicle to operate using either or both power sources.
- There are different types of hybrid systems, but the most common ones include parallel hybrids (both the engine and electric motor can power the vehicle independently) and series hybrids (only the electric motor drives the wheels, while the engine generates electricity).
