UP waives registration fees on Hybrid Maruti, Toyota, and Honda cars. Here's how much you can save

The Uttar Pradesh (UP) government has reportedly announced a full waiver of registration tax on strong hybrid cars, potentially saving customers up to ₹3.50 lakh . The reported move will benefit companies such as Maruti Suzuki India (MSIL), Honda Cars India (HCIL), and Toyota Kirloskar Motor (TKM).

The state, according to reports, is offering a "100 percent waiver on registration fees for strong hybrid electric vehicles and plug-in hybrid electric vehicles" through a directive issued on July 5.

With UP charging eight percent road tax on vehicles under ₹10 lakh and ten percent on those above ₹10 lakh, this waiver is a significant incentive. BT could not independently verify the reports. 

UP is a major market for passenger vehicles, recording 2,36,097 units sold in the first half of this year, a 13.46 percent increase from the same period in 2023. In Q2 alone, sales reached 1,09,712 units, up 10.26 percent from last year.

“This policy will boost strong hybrid vehicle sales in UP, even though the market is currently small. Most buyers of such vehicles are not first-time owners. This move by Chief Minister Yogi Adityanath is set to aid the auto sector,” said Ankit Raj, Chairperson of the Federation of Automobile Dealers Associations (FADA).

Earlier this year, the state also implemented a zero registration cost policy for electric vehicles (EVs).

An MSIL dealer noted that while current demand for strong hybrids in UP is low, the new policy could drive an increase in sales. Analysts predict that other states might follow UP’s example, potentially boosting vehicle sales and increasing the market share of luxury hybrids.

Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) both utilize an internal combustion engine and an electric motor. The primary difference is that PHEVs have a larger battery that needs to be charged from an external source.

Maruti offers HEV technology in the Grand Vitara SUV and the Invicto MPV. Toyota provides similar technology in the Urban Cruiser Hyryder SUV and the Innova Hycross MPV. Honda incorporates HEV technology into the City e
sedan.

With the UP government waiving registration fees for HEVs, buyers can save over ₹3 lakh on the Maruti Suzuki Invicto and Toyota Innova Hycross, and more than ₹2 lakh on the Maruti Suzuki Grand Vitara, Toyota Urban Cruiser Hyryder, and Honda City e:HEV.

The Maruti Suzuki Grand Vitara and Toyota Urban Cruiser Hyryder share the same hybrid powertrain: a 1.5-litre petrol engine (92PS/122Nm) paired with an electric motor (80PS/141Nm), delivering a combined output of 116PS. The transmission is handled by an e-CVT.

The Maruti Suzuki Invicto, a badge-engineered version of the Toyota Innova Hycross, features a hybrid powertrain with a 2.0-litre petrol engine and an e-CVT. This system produces a total power of 186PS, with the engine generating 152PS and 188Nm of torque, and the motor providing 113PS and 206Nm of torque.

The Honda City e:HEV is powered by a 1.5-litre Atkinson cycle petrol engine (98PS and 127Nm) and two electric motors, delivering a total system output of 126PS. This sedan also uses an e-CVT for transmission duties.