UP government policy slashes prices of hybrid vehicles by ₹3L
What's the story
The Uttar Pradesh government has introduced a new policy that offers a 100% waiver on road tax for strong hybrid cars and SUVs.
This policy, which was circulated on July 5, significantly reduces the on-road prices of hybrid vehicles such as Toyota's Hyryder SUV and Hycross MPV, Honda City e:HEV, as well as Maruti's Grand Vitara and Invicto.
The price cuts are anticipated to stimulate sales of these models in the state.
New prices
Significant price reductions for popular hybrid models
The new policy applies only to strong hybrid cars registered in Uttar Pradesh.
The Hyryder midsize SUV, previously priced between ₹20.04 lakh and ₹24.29 lakh, will now cost between ₹18.37 lakh and ₹22.25 lakh, a reduction of up to ₹2.04 lakh.
The Innova Hycross hybrid has also seen a price cut of up to ₹3.11 lakh, now costing between ₹28.93 lakh and ₹34.26 lakh.
Maruti and Honda
Maruti and Honda models also benefit from tax waiver
Maruti's Grand Vitara and Invicto, along with the Honda City e:HEV, will also see significant price reductions due to the new policy.
The midsize SUV models will experience a price cut of up to ₹1.98 lakh, while Maruti's premium MPV will see a reduction of up to ₹2.88 lakh.
The Honda City e:HEV, equipped with a 126hp, 1.5-liter petrol-electric powertrain, will have its on-road price reduced by over ₹2 lakh.
Future impact
Impact on luxury models and future sales uncertain
While some Toyota dealers are advertising price cuts for the more expensive Camry, it is unclear if luxury models like the Vellfire or Lexus's hybrid range will also be affected by the new policy.
Between September to November 2023, sales of strong hybrid vehicles totalled 24,026 units, compared to 21,445 EVs sold.
If more states decide to waive off road tax for strong hybrids, it could further boost sales of these models.
Sales surge
Hybrid vehicles outsell EVs, reach 'tipping point'
Sales data from September to November 2023 indicates that strong hybrid vehicles have outsold electric vehicles (EVs), with 24,026 units sold compared to 21,445 EVs.
This suggests a 'tipping point' where hybrids consistently outsell EVs has been reached.
If more states decide to waive off road tax for strong hybrids, this could provide an even greater momentum to sales of these models.