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No discount on hybrid cars! Big companies wrote a letter to the UP government, know what is the matter

The country’s leading automobile manufacturers have written a letter to the Uttar Pradesh government to not give discounts on hybrid cars. The companies believe that giving discounts on hybrid cars will affect the sale of electric vehicles and investments made for the EV industry. Business Today quoted Reuters Printed reports According to the report, big companies like Hyundai, Kia Motors, Tata Motors and Mahindra have separately written letters to the UP government and said that there should be no discount on hybrid cars.

What is the matter:

Recently, the Uttar Pradesh government has announced tax exemption on the registration of strong hybrid cars. This will lead to huge savings in car purchase. With this decision of the government, customers can potentially save up to Rs 3 lakh while purchasing a hybrid car. The UP government is giving 100 percent discount on registration fees for strong hybrid electric vehicles and plug-in hybrid electric vehicles. In Uttar Pradesh, 8% road tax is levied on vehicles priced less than Rs 10 lakh and 10% on vehicles priced more than Rs 10 lakh, so this decision will be quite a relief.

Save up to Rs 3 lakh on these cars:

Companies like Maruti Suzuki India (MSIL), Honda Cars India (HCIL) and Toyota Kirloskar Motor (TKM) are expected to benefit greatly from this decision of the UP government. Because they are major car brands that manufacture and sell hybrid cars in the Indian market. Customers can save up to Rs 3 lakh on cars like Maruti Invicto and Toyota Innova Highcross and up to Rs 2 lakh on Maruti Grand Vitara, Toyota Urban Cruiser Highrider and Honda City e: HEV.

Discount in UP for electric vehicles:

In July, the Uttar Pradesh government issued a new notification to promote the use of electric vehicles. Under this scheme, a 15% subsidy will be given on the purchase of 25,000 electric cars, with a maximum limit of Rs 1 lakh. In addition, an amount of Rs 100 crore has been allocated for the purchase of 200,000 electric two-wheelers. This includes a subsidy of Rs 12,000 or 15% of the vehicle price. This subsidy program will remain effective till 2027 or until the allocated amount is exhausted (whichever is earlier).

What the companies wrote:

According to the report, South Korean company Hyundai, which is soon going to launch its IPO in India, wrote a letter to the UP government on July 12 saying that the government’s decision will derail the electrification of transport. On the other hand, Kia says that promoting hybrid vehicles in this way will negatively impact the adoption of electric vehicles. Mahindra has also expressed concern about the EV market being affected.

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Tata Motors, the leader of the electric vehicle segment in the country, said in its letter written on July 11 that giving preference to hybrid vehicles could put the $9 billion investment made by the industry for the development of EV at risk. Let us tell you that Tata Motors has the highest number of electric vehicles in its portfolio. The company sells many models including Nexon EV, Tiago EV, Tigor EV and Punch EV. This month the company is also going to launch its new electric car Curvv EV.

Note, Hyundai, Kia, Tata and Mahindra & Mahindra have not commented publicly on this move of the Uttar Pradesh government. Aaj Tak could not independently confirm this report.

Source (PTI) (NDTV) (HINDUSTANTIMES)

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