In Boost To Maruti Suzuki, Uttar Pradesh Exempts Hybrid Cars From Registration Fee

The Uttar Pradesh government has waived off registration fees on hybrid cars, in what is seen as a boost to Maruti Suzuki India Ltd. and a few of its peers.

The Yogi Adityanath-led government in the northern state, in a circular dated July 5, 2024, has decided to give a 100% waiver on the registration fee of strong hybrid cars and plug-in hybrid cars with immediate effect, according to two people with knowledge of the matter. 

The state imposes an 8% road tax on four-wheelers that cost less than Rs 10 lakh, and 10% on those priced at Rs 10 lakh and higher.

The move is seen as a boost to Maruti Suzuki, which retails two strong hybrid cars—the Grand Vitara and Invicto. Toyota Kirloskar Motor India Ltd. has the Hyryder and Innova Hycross, and Honda Cars India Ltd. sells a hybrid version of its City sedan.

The volumes are too low for the exemption to make an immediate difference, but it sets the stage for higher adoption of hybrid cars in Uttar Pradesh, the first of the two people cited above said. A buyer can expect to save at least Rs 1.5 lakh on a hybrid car now, this person said.

In 2023, Maruti Suzuki sold just 1,000 hybrid vehicles in Uttar Pradesh, as compared to overall sales of 16,000 units. The sales figures for Toyota India and Honda Cars India weren’t immediately available.

To be sure, Uttar Pradesh is one of the biggest car markets in India, accounting for over 10% of the world’s third largest automotive market. In the first half of 2024, the state clocked retail sales of 2,36,097 units—a jump of 13.46% from 2,08,092 units in January-June 2023.