The Uttar Pradesh government has announced a complete waiver of registration tax on strong hybrid cars,  a move that would strongly encourage the adoption of environment-friendly vehicles, according to media reports here.

The policy aims to encourage the adoption of greener vehicles and reduce the environmental impact of traditional gasoline and diesel-powered cars.

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With this policy coming into force, the leading automakers Maruti Suzuki and Toyota are expected to benefit significantly.

Notably, the exact quantum of reduction in the taxes has not been revealed yet, but as reported by a business daily, a 100 per cent rebate is being offered.

This initiative is expected to help customers potentially save up to Rs 3.50 lakh.

Maruti Suzuki, with its popular hybrid models like the Grand Vitara, and Toyota, known for its efficient hybrid technology in models such as the Innova Hycross and Urban Cruiser Hyryder, stand to see increased sales and customer interest.

Under the current arrangement, the UP government levied an 8 per cent road tax on vehicles priced below Rs10 lakh and ten per cent on those costing more than Rs 10 lakh (on ex-showroom).

Notably, as this is an amendment to the state’s existing EV policy, the relaxation in registration cost will be valid till October 2025.

According to the Federation of Automobile Dealers Associations (FADA), UP is among the largest markets for passenger vehicles in India.

UP saw retail sales of 2,36,097 units in the first half (H1) of this year, marking a 13.46 per cent increase compared to 2,08,092 units in January-June 2023.

As per figures of the second quarter alone, Uttar Pradesh recorded sales of 1,09,712 units, FADA reported.  This is a growth of 10.26 per cent from 99,501 units in the same period last year.

The Uttar Pradesh government has announced a complete waiver of registration tax on strong hybrid cars, a move that would strongly encourage the adoption of environment-friendly vehicles, according to media reports here.