The Uttar Pradesh government decided to continue its Electric Vehicle Manufacturing and Mobility Policy until 2027. According to CNBC-TV18, the government has extended the availability of subsidies and incentives mentioned in the policy for another three years.
The policy started in October 2022 to encourage clean transportation solutions and create a favorable environment for adopting EVs in the state.
Under the scheme, electric two-wheeler buyers will receive ₹5,000 subsidy. Moreover, those purchasing fully electric cars can receive up to ₹1 lakh from the Uttar Pradesh government. Additionally, the policy provides incentives of ₹20 lakh for private electric buses and ₹12,000 for each electric three-wheeler.
Moreover, the government has allocated Rs 100 crore for subsidizing 200,000 two-wheelers and Rs 250 crore for four-wheelers.
The 2022 New Electric Vehicle Manufacturing and Mobility Policy offers financial advantages to EV buyers. It also benefits EV manufacturers, aiming to encourage investment and production in Uttar Pradesh. Additionally, the government is providing incentives to service providers.
Hybrid Vehicle Tax Exemption Clarification
UP Govt extended the policy after exempting hybrid vehicles from road tax and registration fees, increasing savings for buyers.
Last week, Uttar Pradesh declared a 100% exemption of registration fees for hybrid vehicles. However, the state govt later clarified that only cars priced within a specific range would qualify for this exemption. The proposed limit might be up to Rs 20 lakh, affecting cars like Toyota HyCross and Maruti Invicto. Nevertheless, a final decision on this matter is still pending.
EVs in India currently have a tax rate of just 5 percent. Meanwhile, hybrid vehicles face a much higher tax rate of up to 43 percent. The tax cut on hybrid cars in UP will result in substantial price drops. Thus, buyers of models like Toyota Urban Cruiser HyRyder, Honda City Hybrid, and Maruti Suzuki Grand Vitara will benefit from notable price reductions.
Notably, last week, state government officials held meetings with automakers such as Maruti Suzuki, Tata Motors, Toyota, and the Mahindra group.
