One of the leading players that deal in hybrid cars, Toyota, will be profiting big time from this decision. The current conditions stipulated in the form of the so-called waiver should allow making their hybrid vehicles at least 10 percent cheaper.
Other manufacturers, such as Kia, Tata, and Mahindra, have been ramping up their EV growth plans and view this as a regression.
In a significant move that is certain to cause a stir in the auto sector in India, the Uttar Pradesh state government has reportedly clarified that it will not retract from its recent action of exempting hybrid vehicles from registration taxes, according to a story in the Reuters news agency.
Reuters reports that this decision was reportedly made by officials in India’s most populous state and was confirmed by two sources; this is surely a happy news for Toyota while a rather bitter blow to Tata Motors, Mahindra & Mahindra, and other domestic players.
One of the market leaders in the segment of hybrid cars, Toyota, will be able to benefit greatly from this decision.
The waiver involves hybrids like the Toyota Camry Hybrid Sedan and brings a 10 percent reduction in the state price, that is, real savings of up to 432,000 rupees. This could considerably increase sales for Toyota in Uttar Pradesh, which comprises nearly 10 percent of India’s automotive market.
This was as affirmed and agreed during a meeting between UP Chief Secretary Manoj Kumar Singh and leading automakers on Sunday.
The sources further reveal that Singh was very categorical in stating that the policy of the state will not change, unable to lobby from major automakers such as Hyundai, Kia, Tata Motors, and Mahindra & Mahindra.
