Hyundai, Tata, and others challenge Uttar Pradesh’s tax waiver on hybrids

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Posted by NewAdmin on 2025-02-05 09:05:53 |

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Leading automakers, including Hyundai, Tata Motors, Kia Motors, and Mahindra, have raised objections to Uttar Pradesh’s decision to waive registration taxes for hybrid vehicles. The companies argue that such incentives could slow down India's electric vehicle (EV) adoption and impact their planned investments in the EV sector.

The state government introduced the tax waiver as part of its green mobility push, aiming to promote fuel-efficient and eco-friendly vehicle options. However, major EV manufacturers believe this move could shift consumer preference toward hybrids rather than fully electric vehicles, potentially delaying India's long-term EV transition goals.

A senior executive from Tata Motors stated that government policies should prioritize EVs over hybrid models to ensure a faster transition to sustainable transportation. Kia Motors and Mahindra have echoed similar concerns, emphasizing that hybrid technology, while beneficial in the short term, does not align with the national goal of complete electrification in the coming decades.

In response to these concerns, the Uttar Pradesh government has announced an industry meeting to address the objections raised by automakers. Officials have indicated that a review of the tax policy will be conducted based on industry feedback before making a final decision.

With Uttar Pradesh emerging as a key investment destination for automobile manufacturing and EV infrastructure, the outcome of this policy review is expected to influence future investment decisions and shape the state’s green mobility strategy.

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