Zero registration fee for hybrid cars in UP raises the bar in NCR

The on-road prices of strong hybrid cars have decreased by up to ₹4 lakh in Uttar Pradesh after the state government decided to waive registration fee on them in a bid to promote green technology, according to automobile industry sources.

- DEEPAK PATEL & VIRENDRA SINGH RAWAT

Around 100 strong hybrid cars were sold per month in Uttar Pradesh in FY24. With the new directive effective from July 1, hybrid vehicles are now grouped with electric vehicles (EVs) for registration fee exemptions. This move is anticipated to invigorate sales of these vehicles in the state, which is among the largest EV markets in India.

Unlike mild hybrids, which constantly need the engine, strong hybrids can run solely on the electric motor for short distances, enhancing their appeal.

Previously, EVs enjoyed a registration fee exemption in the state, while petrol/diesel and strong hybrid vehicles attracted 8-10 per cent fees based on their cost (below and above ₹10 lakh, respectively). This policy change slashes on-road prices of strong hybrids by roughly 10 per cent, said industry sources.

"The UP government's direction has led to significant price drops," noted an industry insider. "For instance, Maruti Suzuki's Grand Vitara is now cheaper by about ₹2 lakh in UP, and the Invicto's onroad price has reduced by about ₹3 lakh."