Shares of Maruti Suzuki rose 6 per cent to reach a day’s high of Rs 12,736 on the BSE, emerging as the top Nifty gainer on Tuesday. This comes after the registration fee waiver by the UP (Uttar Pradesh) state government.
According to automobile industry sources, the on-road prices of strong hybrid cars have decreased by up to Rs 4 lakh in Uttar Pradesh after the state government decided to waive registration fee on them in a bid to promote green technology.
The move resulted in a 100 per cent waiver of the aforementioned tax, resulting in potential benefits for customers up to Rs 3.5 lakh and companies like Maruti Suzuki, Toyota, and Honda Cars.
Among listed players, Maruti Suzuki India is one of the leading car makers in the Indian hybrid market.
Maruti offers HEV technology in the Grand Vitara SUV and the Invicto MPV. Toyota provides similar technology in the Urban Cruiser Hyryder SUV and the Innova Hycross MPV. Honda incorporates HEV technology into the City e-sedan.
Hybrid electric cars as well as plug-in hybrid electric vehicles utilize an internal combustion engine along with an electric motor. The key distinction lies in PHEVs employing a larger battery that requires external charging.
The UP government currently charges an 8 per cent road tax on vehicles that cost less than Rs 10 lakh, and a 10 per cent tax on vehicles that cost more than Rs 10 lakh (on ex-showroom).
Reportedly, UP is one of the largest markets for passenger vehicles in the country, with retail sales of 2,36,097 units in the first half (H1) of this year — a jump of 13.46 per cent compared with 2,08,092 units in January-June 2023.
Earlier this year, the state also implemented a zero registration cost policy for electric vehicles (EVs).
Shares of Maruti Suzuki have increased by 28 per cent in the last one year while on a year-to-date basis, the stock has surged 23 per cent.
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