Electric Vehicle Subsidy: The Uttar Pradesh government had recently announced a tax exemption on the registration of strong hybrid cars. Due to this the burden on the pockets of car buyers was being reduced significantly.
With this decision of the government, customers could have saved up to Rs 3 lakh on buying a hybrid car. The Uttar Pradesh government has given a 100 percent discount on registration fees on strong hybrid electric vehicles and plug-in hybrid electric vehicles.
The country’s leading vehicle manufacturing companies are angry. These companies believe that promoting hybrid cars will affect the sale of electric vehicles and the investment made in the EV sector will be in danger.
Bumper discount on hybrid cars
The Uttar Pradesh government had recently announced a tax exemption on the registration of strong hybrid cars. This was going to give a big relief to car buyers.
With this decision, customers could have saved up to ₹ 3 lakh on buying a hybrid car. The government has given a 100% discount on registration fees for strong hybrid electric vehicles and plug-in hybrid electric vehicles.
Companies got a shock
Companies like Maruti Suzuki, Honda Cars India, and Toyota Kirloskar Motor were expected to benefit from this decision. But on the other hand, the country’s leading EV manufacturers are unhappy with this decision.
Companies like Hyundai, Kia Motors, Tata Motors, and Mahindra have written a letter to the government appealing to withdraw the discount on hybrid cars.
These companies believe that promoting hybrid cars will affect the sales of electric vehicles and the investment made in the EV industry will be at risk.
Promotion of electric vehicles in UP
On the other hand, the Uttar Pradesh government is also taking several steps to promote electric vehicles. In July itself, the government had announced to give subsidy of up to 15% on the purchase of electric vehicles.
Under this scheme, a maximum subsidy of ₹ 1 lakh will be given on the purchase of 25,000 electric cars. Apart from this, ₹ 100 crore has been allocated for the purchase of 2 lakh electric two-wheelers.
In this, a subsidy of up to ₹ 12,000 or 15% of the vehicle price will be given. This subsidy scheme will be in force till the year 2027 or till the allocated amount is exhausted.
The EV industry will be affected
Tata Motors has said in a letter to the government that giving preference to hybrid vehicles could pose a threat to the investment of ₹ 9,000 crore made by the industry for the development of EVs.
Tata Motors has many electric cars like Nexon EV, Tigor EV, Tiago EV, and Punch EV. The company is also going to launch its new electric car Curve EV this month.