UP Waives Road Tax for Hybrids, EVs to Boost Clean Mobility

The Uttar Pradesh government has announced that it will completely waive toll on hybrid and electric vehicles. Minister for Industrial Development, Export Promotion and NRI and Investment Promotion Nand Gopal Gupta told News18 that the measure aims to promote cleaner transport, reduce pollution and support India's goal of achieving zero emissions by 2070. The policy, which comes into effect immediately, includes e.g. 100% exemption from the registration fee for powerful hybrid electric vehicles and plug-in hybrid electric vehicles. This initiative is expected to increase sales of electric vehicles, create jobs and position Uttar Pradesh as a key player in green mobility. Companies like Maruti Suzuki India, Honda Cars India and Toyota Kirloskar Motor are likely to benefit as customers can save up to Rs 4,000 on popular hybrid models. Earlier, the UP government levied 8% toll on vehicles priced below Rs 10,000 and 10% on vehicles priced above Rs 10 lakh. Deloitte India partner Rajat Mahajan noted that India's strong hybrid market, although still in its infancy, has grown from 0.5 percent in 2022 to 2.5 percent in the first quarter of 2024. the market for these vehicles is expanding . The Federation of Automobile Dealers Associations (FADA) reports that Uttar Pradesh is one of the largest passenger car markets in India. This exemption may encourage other countries to implement similar policies. ARENQ CEO Jitendra Patil and Statiq Co-Founder and CTO Raghav Arora praised the initiative and highlighted its potential to make hybrid and electric vehicles more accessible and promote clean transportation across the state..