Shocking Twist To Hybrid Car Price Drop: Union Govt Vs State Govt
Recently, the Uttar Pradesh government made a huge announcement by introducing an initiative to waive off registration charges for strong hybrid vehicles. This managed to garner a lot of attention from automotive experts and buyers. However, there has been a surprising twist to this new initiative.
Twist in the Initiative
While the initial announcement promised significant savings for buyers of hybrid vehicles, it has now been revealed that not all hybrid cars sold in Uttar Pradesh will qualify for these benefits.
As per reports, the state scheme will only apply to vehicles certified under the central government’s FAME II (Faster Adoption and Manufacturing of Electric Vehicles) programme.
Apart from this, it has also been reported that only certain strong hybrids will meet these specific conditions. At the moment, these conditions have not been revealed.
However, it is expected that they will be clarified soon. Buyers will have to wait for further details to understand which vehicles will actually see the cost reductions.
Some reports have stated that only strong hybrid vehicles under Rs 20 lakh will qualify for the tax waiver benefits. Currently, there are only three strong hybrid cars in India. These include the Maruti Suzuki Grand Vitara, Toyota Urban Cruiser Hyryder, and the Honda City e:HEV. All of these are priced just under Rs 20 lakh.
This means that the most popular strong hybrid car in India, which is the Toyota Innova Hycross, could not get this benefit. Additionally, the badge-engineered model of the Hycross, which is Maruti Suzuki’s Invicto, will also not see any changes in the pricing.
Unfair Taxation on Hybrid Cars in India
As we have mentioned before as well, despite the benefits of hybrid vehicles, they have been subject to high taxation in India. Currently, strong hybrids are taxed at a staggering 48%. This is significantly higher than the 5% GST levied on electric vehicles (EVs).
The result of this high tax rate has made hybrids less attractive to average consumers. However, the recent initiative by the UP government indicates a growing recognition of the potential of hybrid technology. It is believed that more states in the future could follow the same to make these hybrids a lot more popular in India.
Maruti Suzuki’s Reaction to the Initiative
Following the announcement from the Uttar Pradesh government, Maruti Suzuki had the most positive reaction. The company, following the announcement, saw its share prices surge by 5%, reaching Rs 12,615. RC Bhargava, Chairman of Maruti Suzuki, highlighted that this initiative is a right step for the cleaner future of Indian mobility.
Impact on Hybrid Models
The tax waiver initiative, while limited to specific models, is still expected to significantly reduce the upfront cost of strong hybrid vehicles. The Toyota Urban Cruiser Hyryder, the Maruti Suzuki Grand Vitara, and the Honda City Hybrid, which are currently the only strong hybrids priced under Rs 20 lakh, will all see reductions in their overall cost.
Future of Hybrid Vehicles
Additionally, this initiative from the Uttar Pradesh government is expected to spur the adoption of hybrid technology. Hybrid vehicles, which are known for their high fuel efficiency and lower emissions, present a practical solution to reducing vehicular emissions. If other state governments also decide to offer similar waivers, hybrids could become the next big thing in India.