Maruti shares skyrocket following UP's tax waiver on hybrid vehicles
Maruti Suzuki India's shares saw a significant surge of nearly 5%, hitting ₹12,615 per share on Tuesday. This increase was triggered by the Uttar Pradesh (UP) government's announcement to fully exempt registration tax on strong hybrid electric cars (HEVs) and plug-in hybrid electric vehicles (PHEVs). The decision has positioned Maruti Suzuki as the top Nifty gainer today.
Tax waiver benefits Maruti Suzuki's hybrid models
The UP government's tax waiver directly benefits Maruti Suzuki's Grand Vitara SUV and Invicto MPV models, both equipped with strong hybrid technology. The Grand Vitara features a hybrid powertrain that includes a 1.5-liter petrol engine and an electric motor. Similarly, the Invicto, a variant of the Toyota Innova Hycross, integrates a 2.0-liter petrol engine paired with an e-CVT for combined system power.
UP buyers to save big on Maruti Suzuki's hybrid models
With the new tax exemption, buyers in Uttar Pradesh can save over ₹3 lakh on the Maruti Suzuki Invicto and more than ₹2 lakh on the Maruti Suzuki Grand Vitara. The UP government typically charges an 8% road tax on vehicles costing less than ₹10 lakh and a 10% road tax on vehicles priced above ₹10 lakh (ex-showroom).
UP's hybrid vehicle market and Maruti Suzuki's performance
Under the new directive, hybrid vehicles and electric vehicles are grouped together for exemption in registration fee. In FY24, around 100 strong hybrid cars were sold in UP. According to FADA, the automobile dealers association, UP is one of India's largest markets for passenger vehicles with retail sales of 2.3 lakh units in H1 this year, a 13% increase from the same period last year.
