Maruti Suzuki India Chairman RC Bhargava highlighted the Uttar Pradesh government’s new policy move on Tuesday, which exempts hybrid cars from registration taxes entirely. He emphasized that this action recognizes the need for a variety of solutions to address issues related to oil reliance and the environment. According to reports, the tax exemption will result in a price decrease of up to INR 3.5 lakh for hybrid vehicles. Bhargava stated his hope that other states will be inspired to take similar action by the UP government’s proposal.
Bhargava added, “The UP government’s action is the first example of a state government recognizing and addressing the need for diverse technologies to reduce oil imports and curb carbon emissions.” He underlined the value of hybrid vehicles and other efficient technologies in addition to electric vehicles for addressing environmental concerns.
Maruti Suzuki’s shares experienced a notable increase that day, closing at INR 12,820.20 on the Bombay shares Exchange (BSE) after rising 6.6%. When the stock price peaked during the day, it was INR 12,955, up 7.72%. Maruti Suzuki’s shares surged by 6.51% to INR 12,807 on the National Stock Exchange (NSE), making it the best-performing company in the Sensex and Nifty indices.
In hybrid cars, an internal combustion engine and one or more battery-powered electric motors work together. Notably, Toyota Kirloskar provides vehicles with robust hybrid technology, such as the Innova Hycross and the Urban Cruiser Hyryder. In a similar vein, Maruti Suzuki sells Invicto and Grand Vitara models that have strong hybrid systems. Honda now provides self-charging hybrid versions of the City, a mid-sized sedan.
In India, the current overall tax burden on hybrid vehicles is 43%, inclusive of GST. Battery electric vehicles, on the other hand, pay about 5% in taxes.
