Carmakers have now been notified by the Uttar Pradesh state transport authority that only strong hybrid vehicles that are eligible for the FAME II incentives will be eligible for the road tax waiver. This had been communicated by the transport authority through a letter dated July 9. However, our dealer sources have informed us that this has not yet taken effect and that they are still awaiting clarifications from various parties.
Privately registered hybrid vehicles are not eligible for the road tax waiver; however, the advantages are extended to as many as 55,000 electric and hybrid vehicles utilized for fleet and commercial purposes under the FAME II category for four-wheelers.
Furthermore, only certain petrol-hybrid car models, such as the Grand Vitara and Hyryder, would be eligible for the waiver if this upgrade takes effect. The FAME II benefits are also limited to vehicles priced under Rs 20 lakh (ex-showroom).
This development comes after a few car brands, which focus on EVs, raised concerns on the road tax waiver for hybrid vehicles. Some of these brands have petrol hybrids and are readying EVs for a market launch. The updated policy will most likely not have a blanket exemption and offer incentives to only certain categories of strong hybrids. Final guidelines regarding incentives on hybrids and EVs will be announced soon, said sources.
The UP Industries Department had said on July 5 that it would waive road tax on hybrid and plug-in hybrid vehicles, effective July 1. At present, a 5 percent tax is levied on EVs, 43 percent on hybrids, and 48 percent on petrol cars. The policy has reduced the on-road prices of models like the Hyryder and the Hycross by up to Rs 3.11 lakh, regardless of their registration type, thus levelling the playing field between petrol and hybrid vehicles.
A few Toyotas and Nexa dealers we spoke to in UP, informed us that, for now, the road tax waiver hasn’t been withdrawn. However, private car buyers are being informed that they may not get these benefits at the time of registeration if the new rules come into effect. All-in-all, it’s a make hay while the sun shines situation for a hybrid vehicle buyer in UP at the moment.