Maruti Suzuki Tops Nifty as UP Waives Hybrid Vehicle Registration Fee

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 9th July 2024 - 04:30 pm

Listen icon

Maruti Suzuki India's shares rose nearly 5% to ₹12,615 per share on July 9, becoming the top Nifty gainer after the Uttar Pradesh (UP) government announced a complete waiver of registration tax on strong hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), effective immediately.

This tax exemption benefits Maruti Suzuki's Grand Vitara SUV and Invicto MPV, both of which feature strong hybrid technology. The Grand Vitara is powered by a hybrid powertrain that combines a 1.5-litre petrol engine (92PS/122Nm) with an electric motor (80PS/141Nm). Similarly, the Maruti Suzuki Invicto, a variant of the Toyota Innova Hycross, features a 2.0-litre petrol engine paired with an e-CVT, providing a combined system power of 186PS (engine power: 152PS, motor power: 113PS).

HEVs and PHEVs both utilize an internal combustion engine along with an electric motor. The primary difference is that PHEVs have a larger battery that requires external charging.

With this tax waiver, buyers in UP can save over ₹3 lakh on the Maruti Suzuki Invicto and more than ₹2 lakh on the Maruti Suzuki Grand Vitara.

Previously, the UP government charged an 8% road tax on vehicles costing less than ₹10 lakh and a 10% road tax on vehicles costing above ₹10 lakh (ex-showroom). Under the new directive, hybrid vehicles are now classified with electric vehicles for exemption from the registration fee. Approximately 100 strong hybrid cars were sold in UP in FY24.

According to the Federation of Automobile Dealers Associations (FADA), UP is one of the largest markets for passenger vehicles in India, with retail sales of 2.3 lakh units in the first half of this year, a 13% increase from 2.08 lakh units in the same period last year.

So far this year, Maruti Suzuki share price have surged over 22%, outperforming the 12% rise in the benchmark Nifty 50 index.

FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
  • Flat ₹20 Brokerage
  • Next-gen Trading
  • Advance Charting
  • Actionable Ideas
+91
''
 
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form