Under the new EV policy, preparations are underway to eliminate the registration fee for electric and hybrid vehicles.
Currently, the registration fee in Uttar Pradesh (UP) ranges from 8% to 10%. Once the new order is in place, the cost of hybrid and electric vehicles could decrease by up to Rs 4 lakh.
Recent Developments and Discussions
On July 5, the UP government decided to waive the 8% to 10% registration tax on plug-in hybrid cars. This move is expected to lower the on-road price of these cars by up to Rs 4 lakh.
In response, the Chief Secretary held a meeting with major vehicle manufacturers on Sunday, which included officials from the transport and industrial development departments.
Potential Variations in Exemptions
During the meeting, representatives from Tata Motors, Hyundai, Kia, Mahindra & Mahindra, Maruti Suzuki, Toyota, Honda, and Bajaj were present.
Sources indicate that the auto companies were informed that the incentive is intended to encourage the adoption of plug-in and hybrid vehicles, rather than fully electric vehicles.
An official mentioned that the discount on registration fees might differ between hybrid and electric vehicles.
However, some companies, including Tata Motors, Hyundai, Kia, and Mahindra & Mahindra, expressed concerns that focusing only on hybrid vehicles could negatively impact the electric vehicle segment.
They suggested that the July 5 order should extend to all green technologies, including hybrids.
The Chief Secretary emphasized that UP’s EV policy aims to promote both hybrid and electric vehicles as replacements for petrol and diesel vehicles, and that the policy will support both types of vehicles.
