UP Scraps Road Tax On Hybrids; Innova Hycross Now Cheaper By Rs. 3 Lakh

Eight per cent road tax for cars below Rs. 10 lakh, 10% for those above in UP

Suzuki Grand Vitara, Toyota Urban Cruiser Hyryder cheaper by up to Rs. 1.7 lakh

Higher-end Toyota and Lexus may get road tax benefit as well

July 10, 2024 Uday Singh

UP Scraps Road Tax On Hybrids; Innova Hycross Now Cheaper By Rs. 3 Lakh

Chief Minister Yogi Adityanath-led Uttar Pradesh government in a first has entirely waived registration tax for strong hybrids in the state. Popular mass-market hybrid cars, including the Toyota Innova Hycross, will see a price drop of over Rs. 3 lakh courtesy of this move. Notably, electric vehicles attract zero tax in UP.

This comes amid much debate surrounding GST reduction on hybrid four-wheelers, a proposal previously rejected by the Finance Ministry. Hybrid cars at over 24,000 outsold EVs by nearly 2,600 units during September to November last year. A hybrid setup is well suited to address range anxiety since it works in conjunction with an ICE engine. PHEVs, unlike hybrids, make use of a larger battery pack that is charged via an external source.

Major Automakers Get Benefit

Toyota’s flagship Innova Hycross MPV leads the pack after getting a price cut of Rs. 3.11 lakh, taking its estimated price range from Rs. 28.93 lakh to Rs. 34.26 lakh, on-road. With a reduction of up to Rs. 1.67 lakh, the Urban Cruiser Hyryder now starts at Rs. 18.37 lakh.

Maruti Suzuki, which sells the Invicto (rebadged version of Innova Hycross), reported a subtraction of Rs. 2.88 lakh for a new price bracket starting at Rs. 26.71 lakh and reaching Rs. 31.07 lakh. That translates to a difference of over Rs. 3 lakhs when compared to its Toyota sibling.

This incentive scheme also blankets Honda’s sole hybrid offering, the City e:HEV. Post prices slashed by Rs. 2 lakh, its V and ZX trims are now up for grabs at Rs. 22.31 lakh and Rs. 22.40 lakh, respectively.

price reduction in hybrids

“This policy will boost strong hybrid vehicle sales in UP, even though the market is currently small. Most buyers of such vehicles are not first-time owners. This move…is set to aid the auto sector,” Federation of Automobile Dealers Associations (FADA) Chairperson Ankit Raj stated.

While the demand for strong hybrids is limited, the new scheme can substantially boost sales. Depending on how well it performs, market analysts predict other states might join the bandwagon.