UP government took a big decision on hybrid cars, Maruti’s share became rocket

New Delhi. If you live in Uttar Pradesh and are thinking of buying a hybrid car, then there is a good news for you. In fact, the Uttar Pradesh government has decided to completely waive the registration tax on Strong Hybrid Electric (HEV) and Plug-in Hybrid Electric (PHEV) vehicles in the state with immediate effect.

The impact of this announcement was visible on the shares of the country’s largest car manufacturer Maruti Suzuki. On July 9, shares of Maruti Suzuki India rose by about 5 percent to Rs 12,615 per share. After the announcement, it became the highest profit making stock in Nifty. Maruti Suzuki shares have gained more than 22 per cent so far this year, outpacing the 12 per cent rise in the benchmark Nifty 50 index.

There will be benefit on two company cars
This move will benefit Maruti Suzuki’s Grand Vitara SUV and Invicto MPV, both of which are cars based on strong hybrid technology. The Grand Vitara is equipped with a hybrid powertrain consisting of a 1.5-litre petrol engine (92PS/122Nm) and an electric motor (80PS/141Nm). Apart from this, the benefit of tax reduction will also be available to the customers purchasing hybrid variants of Maruti Suzuki Invicto and Toyota Innova Hycross. Both these cars come with 2.0-litre petrol-hybrid e-CVT engine.

How much money will customers save?
Under this initiative, buyers in UP can save up to Rs 3 lakh on Maruti Suzuki Invicto and over Rs 2 lakh on Maruti Suzuki Grand Vitara. Generally, the UP government levies 8 percent road tax on vehicles priced below Rs 10 lakh and 10 percent road tax on vehicles priced above Rs 10 lakh (ex-showroom).

With this new directive, hybrid vehicles are now grouped with electric vehicles for exemption in registration fees. Nearly 100 strong hybrid cars were sold in UP in FY24.

What are hybrid vehicles?
Hybrid electric cars have a fuel-powered engine as well as a battery that powers the electric motor. The battery of a hybrid vehicle does not need to be charged. At the same time, plug-in hybrid electric vehicles are also hybrid but the battery provided in them needs to be charged like an electric car.

Tags: business news, Maruti Suzuki