India’s Uttar Pradesh State Waives Levies on Hybrid Cars, Making Them 10% Cheaper: Big Win for Toyota

The recent move by India’s Uttar Pradesh state to waive some levies on hybrid cars has sent shockwaves through the automotive industry, with industry experts and analysts predicting a significant shift in the market. This decision, which will make hybrid cars 10% cheaper, is a major win for Japan’s Toyota Motor, which has been lobbying for such incentives for quite some time.

Hybrid cars, which offer fuel savings by operating on both electric motors and combustion engines, have been gaining popularity in India. The government’s decision to waive registration tax on some hybrid car sales is expected to further boost their demand. This move has already had a positive impact on the market, with shares of Maruti Suzuki, India’s top carmaker, surging since the news broke.

Analysts believe that Uttar Pradesh’s decision could pave the way for other states to follow suit, leading to a significant increase in the sales of hybrid cars across the country. With more hybrid models expected to hit the market soon, their share of total sales is projected to rise in the coming years.

Toyota, which holds a dominant share of India’s ‘strong’ hybrid car market, is expected to be a key beneficiary of this move, along with its partner Maruti Suzuki. The exemption of levies applies to strong hybrids, which can run on electric motors for a while, as well as plug-in hybrids.

While the Indian government has been focusing on promoting electric vehicles, offering incentives to companies to build such cars, the high taxes on hybrids have been a major deterrent. With the federal sales tax on EVs at just 5% and the levy on hybrids as high as 43%, the cost of hybrids has been significantly higher than petrol cars. Uttar Pradesh’s decision to waive some of these levies is a step in the right direction towards promoting green mobility in the country.

Overall, the move by Uttar Pradesh state is a game-changer for the hybrid car market in India. It not only benefits consumers by making these vehicles more affordable but also encourages automakers to invest more in hybrid technology. With other states likely to follow suit, the future looks bright for hybrid cars in India.