Good news for car buyers: Uttar Pradesh scraps registration tax on strong hybrids

The Uttar Pradesh government has waived off registration tax on strong hybrid cars in a move that is a significant boost for green vehicles. In the circular, the state government said that a policy give a 100 percent waiver on the registration fee of strong hybrid vehicles will be implemented with immediate effect. Manufacturers like Maruti Suzuki, Toyota Kirloskar Motor, and Honda Cars India will benefit massively from this new policy while customers can also save up to ₹3.5 lakh while buying these cars.

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Currently, Uttar Pradesh levies an 8 per cent road tax on vehicles priced below ₹10 lakh and a 10 per cent tax on vehicles priced above ₹10 lakh (ex-showroom). The road tax waiver is unlikely to significantly impact the state exchequer owing to low sales of hybrid vehicles.

In hybrid cars, Maruti currently sells the Grand Vitara and Invicto while Toyota offers the Hyryder and Innova Hycross and Honda has the City hybrid.

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The average registration cost for hybrid trims of Grand Vitara and Urban Cruiser Hyryder is close to ₹1.80 lakh in UP. The Innova Hycross and Invicto buyers will benefit with a cut of up to ₹3 lakh in the on-road prices as per the variant customers choose.

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This comes after last year, the Uttar Pradesh government announced a three-year exemption from tax and registration fees for the purchase of EVs which will be valid for five years for EVs manufactured within the state. The government has also relaxed upper maximum expenditure limit on the purchase of vehicles.