According to two sources, Uttar Pradesh would not overturn the decision to waive registration duties on hybrid vehicles, so favoring Toyota and concurrently hurting Tata Motors and Mahindra & Mahindra.
Hyundai, Kia Motors, Mahindra, and Tata pushed the government, which accounts for 10% of the nation’s automobile sales, to eliminate the incentive, arguing that it would complicate efforts to meet India’s targets for the adoption of completely electric vehicles and have an impact on investment strategies.
An industry source and a state government official with firsthand information told the newswire that Uttar Pradesh Chief Secretary Manoj Kumar Singh stated there would not be a reversal of the decision during a meeting between state officials and automakers on Sunday.
Singh did not respond to calls for comment.
Executives observe that EV manufacturers are worried that other states might imitate Uttar Pradesh, where registration duties on certain hybrid vehicles were waived last month, resulting in a 10% price reduction.
The meeting was attended by representatives of Hyundai, Mahindra and Tata – who sought a reversal of the tax waivers, and also by Maruti and Toyota which back the scheme, said one of the sources.
Mahindra refrained from offering comments and Reuters could also not elicit timely responses from the rest of the automakers.
India imposes a federal tax of 5% on EVs while hybrids are taxed at 43%, just below the 48% for gasoline cars. State road and registration taxes are extra and determined by local governments.
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