TL;DR
Uttar Pradesh has ended financial incentives for hybrid cars, now supporting only pure electric vehicles, a move benefiting Indian EV makers but impacting hybrid car prices and sales in the state.
In a significant policy shift, the state of Uttar Pradesh has decided to withdraw all financial benefits previously offered to hybrid cars, now exclusively backing pure electric vehicles (EVs). This move marks a major policy victory for homegrown EV manufacturers like Tata Motors and Mahindra & Mahindra, while presenting a setback for Japanese hybrid car manufacturers such as Toyota, Honda Cars, and Maruti Suzuki.
Effective October 13, the incentives, which included waivers on road and registration taxes amounting to roughly 10% of a vehicle's ex-showroom price, have been discontinued for hybrid models. This decision is expected to increase the prices of popular hybrid cars like the Honda City, Toyota Innova Hycross, and Maruti Suzuki Grand Vitara by up to 10% in Uttar Pradesh, a key market for hybrid vehicles after Maharashtra and Karnataka.
The state's shift is aimed at boosting local EV production and employment, aligning with a broader national push towards electric mobility. This strategic decision by India's largest state to solely promote pure EVs highlights the government's strong commitment to accelerating the adoption of electric vehicles and fostering a self-reliant EV ecosystem.