Buy Hybrid Cars in UP; Pay Zero Registration Fees
In a landmark decision aimed at fostering eco-friendly transportation, the Uttar Pradesh government has introduced a 100% waiver on registration fees for hybrid vehicles. This initiative is part of the state’s broader efforts to promote sustainable mobility and reduce carbon emissions. The waiver will be applicable until October 2025, offering a significant incentive for those considering the purchase of hybrid vehicles.
Impact on Popular Hybrid Models
Several popular hybrid models are set to benefit from this initiative. Notable among them are the Maruti Suzuki Grand Vitara, Toyota Innova Hycross, and Urban Cruiser Hyryder. For instance, the average registration cost for hybrid variants of the Grand Vitara and Urban Cruiser Hyryder is approximately Rs 1.8 lakh in Uttar Pradesh. Under the new policy, this cost will be completely waived, making these vehicles more accessible to consumers.
Expert Opinions on the Initiative
To provide deeper insights into this initiative, we reached out to industry experts Vinkesh Gulati and Randheer Singh. Their perspectives shed light on the broader implications of this policy.
Vinkesh Gulati, Chairman of Research & Academy at the Federation of Automobile Dealers Association (FADA), shared his thoughts on the policy. He said, “In 2022, the Uttar Pradesh government introduced an electric vehicle policy, which began implementation in June 2023. The policy encourages the purchase of electric and hybrid vehicles within UP, requiring these vehicles to be registered in the state. While this initiative is commendable, it’s worth noting that hybrids are generally expensive. This makes them less accessible to the average person in UP, who has lower purchasing power compared to residents of metropolitan areas like Delhi or Mumbai. As a result, the benefits for UP’s general population are quite limited.”
He further added, “On July 11, the UP government held a meeting with stakeholders to explore ways to adjust the policy to better benefit the general public. This ongoing development is noteworthy, especially given UP’s significant role as a major state in India. The policy includes a registration fee of 10% for vehicles costing over ₹10 lakh, with road tax exemptions for vehicles priced at ₹25 lakh, amounting to a potential saving of ₹2.5 lakh. This policy reflects the state’s commitment to promoting greener, more efficient vehicles and a safer environment. However, it may take three to six months to fully implement, and it is hoped that other states will introduce similar incentives.”
Randheer Singh, CEO of ForeSee Advisors and former Director of EMobility at NITI Aayog, also provided his perspective. He shared, “The UP government’s push to promote electric vehicles (EVs) is a notable advancement. The recent policy update, which includes hybrids, aligns well with national schemes like FAME II and the ACCPLI, focusing on battery components. By syncing with these national policies, UP is making itself more appealing to manufacturers, driving demand, and encouraging consumer interest.”
He further added, “The policy supports research and development, potentially leading to more innovative and cost-effective production methods. Additionally, it aligns with national programs, providing benefits such as waiving road tax and registration fees, which typically range from 4% to 10% of the vehicle’s cost. For example, a ₹10 lakh EV could save between ₹40,000 and ₹1 lakh in road tax.”
Talking about the benefits for consumers, he said, “Consumers also benefit from lower fuel costs, saving ₹1,000 to ₹2,000 per month, and reduced maintenance costs, which can amount to ₹15,000 to ₹20,000 annually. Overall, this policy offers significant long-term financial benefits for consumers in UP and supports manufacturers.”
Conclusion
The Uttar Pradesh government’s decision to waive registration fees for hybrid vehicles is a progressive step towards encouraging eco-friendly transportation. By making popular hybrid models more affordable, this initiative not only supports environmental sustainability but also offers substantial financial benefits to consumers. As we move forward, such policies could pave the way for a greener and more sustainable future on our roads.
Watch the full report now!