0% Road Tax For Hybrid Cars In UP Will Continue, No Relief For Electric Cars


Mohul Ghosh

Mohul Ghosh

Aug 14, 2024


The Uttar Pradesh government’s recent decision to maintain road tax waivers for hybrid vehicles, despite significant lobbying from electric vehicle (EV) makers, has sparked considerable debate. This move comes amid a high-profile meeting with major automakers, including Tata Motors, Hyundai Motor India, and Mahindra & Mahindra, among others.

0% Road Tax For Hybrid Cars In UP Will Continue, No Relief For Electric Cars

Hybrid Vehicles Retain Road Tax Waiver

Uttar Pradesh has affirmed its commitment to maintaining a full road tax waiver for hybrid vehicles as part of its green mobility policy. This decision reflects the state’s approach to incentivizing hybrid technology, which currently enjoys the same tax benefits as electric vehicles. The announcement was made following a crucial meeting with key players in the automotive industry, held in Lucknow with Chief Secretary Manoj Kumar Singh.

EV Makers’ Push for Exclusive Incentives

EV manufacturers have expressed their dissatisfaction with the state’s policy, advocating for exclusive incentives for electric vehicles. Major players like Tata Motors, Hyundai, and Mahindra have argued that prioritizing hybrids could undermine the push towards electrification and affect long-term sustainability goals. They stress that EVs are critical for achieving carbon reduction targets and want the government to focus more on supporting zero-emission technologies.

Government’s Rationale and Future Considerations

Chief Secretary Manoj Kumar Singh emphasized that the state’s policy is designed to address India’s unique developmental stage. He explained that while EVs and hybrids both contribute to reducing emissions, a balanced approach is needed to manage the transition effectively. The government acknowledges the need to differentiate between EVs and hybrids but maintains that both technologies are essential to reducing the remaining pollution from internal combustion engine vehicles.

The Uttar Pradesh government is also offering additional incentives to attract green investments, including land at concessional rates and capital subsidies. These measures aim to boost job creation and support the development of new green technologies in the state.

Controversy and Market Impact

The decision to extend incentives to hybrids has led to controversy among EV manufacturers. Critics argue that the focus on hybrids may slow down the adoption of electric vehicles, which are seen as vital for achieving long-term environmental goals. Despite this, the government remains committed to its current policy, highlighting the need for a multi-faceted approach to green mobility.

Conclusion

The Uttar Pradesh government’s decision to continue supporting hybrid vehicles alongside EVs underscores a nuanced approach to green technology adoption. While the policy has faced criticism from EV advocates, it reflects an effort to balance immediate practicalities with long-term sustainability goals.


Mohul Ghosh
Mohul Ghosh
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