UP government policy reduces prices of hybrid vehicles by ₹3L

Significant price cuts on popular hybrid models

The new policy applies only to powerful hybrid cars registered in Uttar Pradesh.

The Hyryder mid-size SUV, which was earlier priced between ₹ 20.04 lakh and ₹ 24.29 lakh, will now be priced between ₹ 18.37 lakh and ₹ 22.25 lakh, a cut of up to ₹ 2.04 lakh.

The price of the Innova Hycross hybrid car has also come down by ₹3.11 lakh and now ranges between ₹28.93 lakh and ₹34.26 lakh.

Maruti and Honda models also benefit from tax exemption

The Maruti Grand Vitara and Invicto, as well as the Honda City e:HEV, will also see significant price cuts due to the new policy.

Prices of mid-size SUV models will be reduced by up to ₹ 1.98 lakh, while prices of Maruti’s premium MPV models will be reduced by up to ₹ 2.88 lakh.

The price of the Honda City e:HEV, which has a 1.5-litre petrol-electric engine with 126bhp, will be reduced by over Rs 2 lakh.

Uncertain impact on luxury models and future sales

While some Toyota dealers are advertising price cuts on the more expensive Camry model, it is unclear whether the new rules will also cover luxury models such as the Vellfire or Lexus’ hybrid range.

From September to November 2023, sales of powerful hybrid vehicles totaled 24,026 units, compared to 21,445 sales of electric vehicles.

If more states decide to eliminate the off-road vehicle tax for powerful hybrids, it could boost sales of these models even further.

Hybrid vehicle sales outpace electric vehicle sales, reach ‘tipping point’

Sales data from September to November 2023 shows that sales of powerful hybrid vehicles outpaced sales of electric vehicles (EVs), with 24,026 units sold compared to 21,445 EVs.

This suggests a “tipping point” has been reached where hybrid sales will consistently outpace electric vehicle sales.

If more states decide to eliminate the off-road vehicle tax for powerful hybrids, it could boost sales of these models even further.