The country’s leading automobile manufacturing companies have written a letter to the Uttar Pradesh government not to give discounts on hybrid cars. Companies believe that giving exemption to hybrid cars will have an impact on the sales of electric vehicles and investments made in the EV industry. According to a report published in Business Today quoting Reuters, big companies like Hyundai, Kia Motors, Tata Motors and Mahindra have written letters to the UP government separately asking them not to give discounts on hybrid cars.
What is the matter:
Recently, the Uttar Pradesh government has announced tax exemption on registration of strong hybrid cars. Due to which there will be huge savings in car purchase. With this decision of the government, customers can potentially save up to Rs 3 lakh while purchasing a hybrid car. The UP government is giving 100 percent rebate on registration fees for strong hybrid electric vehicles and plug-in hybrid electric vehicles. In Uttar Pradesh, 8% road tax is charged on vehicles priced below Rs 10 lakh and 10% on vehicles priced above Rs 10 lakh, so this decision will be a great relief.
Savings up to Rs 3 lakh on these cars:
Companies like Maruti Suzuki India (MSIL), Honda Cars India (HCIL) and Toyota Kirloskar Motor (TKM) are expected to benefit greatly from this decision of the UP government. Because they are major car brands that manufacture and sell hybrid cars in the Indian market. Customers can save up to Rs 3 lakh on cars like Maruti Invicto and Toyota Innova HighCross and up to Rs 2 lakh on Maruti Grand Vitara, Toyota Urban Cruiser Hyrider and Honda City e:HEV.
Exemptions in UP for electric vehicles:
In July, the Uttar Pradesh government had issued a new notification to promote the use of electric vehicles. Under this scheme, 15% subsidy will be given on the purchase of 25,000 electric cars, the maximum limit of which will be Rs 1 lakh. Additionally, an amount of Rs 100 crore has been allocated for the purchase of 200,000 electric two-wheelers. Which includes a subsidy of Rs 12,000 or 15% of the price of the vehicle. This subsidy program will remain in effect till 2027 or till the allotted funds are exhausted (whichever is earlier).
What the companies wrote:
According to the report, South Korean company Hyundai, which is soon going to launch its IPO in India, said in a letter to the UP government on July 12 that this decision of the government will derail the electrification of transport. At the same time, Kia says that promoting hybrid vehicles in this way will negatively affect the adoption of electric vehicles. Mahindra has also expressed concern about the impact of the EV market.
Tata Motors, the leader of the electric vehicle segment in the country, said in its letter written on July 11 that giving preference to hybrid vehicles could put the $9 billion investment made by the industry for the development of EV at risk. Let us tell you that Tata Motors’ portfolio includes most electric vehicles. The company sells many models including Nexon EV, Tiago EV, Tigor EV and Punch EV. This month the company is also going to launch its new electric car Curvv EV.
Note: Hyundai, Kia, Tata and Mahindra & Mahindra have not publicly commented on this move of the Uttar Pradesh government. Aaj Tak has not been able to independently confirm this report.