The Uttar Pradesh government’s policy that provided exemption from road tax and registration fees for electric and hybrid vehicles has lapsed with effect from October 13, and the state has decided not to extend the relief.
The tax waiver, introduced under the state’s Electric Vehicle Policy in 2022, had been aimed at promoting cleaner mobility by offering full exemption on registration and road tax for electric vehicles and, from mid-2024, for strong and plug-in hybrids as well. The exemption period ended on Sunday, and the government has not issued any fresh notification extending the benefits.
Dealers confirmed that new registrations from October 14 onward will attract the usual 8–10% road tax, depending on the vehicle’s price. “There is no road tax and registration waiver anymore. October 13 was the last day,” a senior executive at a dealer outlet in Lucknow told Fe.
The waiver had temporarily lowered prices of several hybrid and electric models, including Maruti Suzuki’s Grand Vitara and Invicto, Toyota’s Hyryder, Camry and Innova Hycross, and Honda’s City e:HEV, by about Rs 2–4 lakh. This led to a surge in demand, making Uttar Pradesh one of the largest markets for hybrid vehicles during the period.
Automakers such as Maruti Suzuki, Toyota and Honda had previously sought continuation of incentives for hybrids, while pure EV manufacturers including Tata Motors, Mahindra & Mahindra, Hyundai and Kia argued that such benefits should remain restricted to zero-emission vehicles.
With the expiry of the waiver, buyers will now face higher on-road prices for both electric and hybrid models, even as overall taxes on hybrids have fallen slightly after the recent revision in GST rates.