Maruti Suzuki Shares Surged After Uttar Pradesh Waived Hybrid Car Registration Fees

Shares of Maruti Suzuki rose 6% to reach a high of Rs 12,736 on the BSE, becoming the top Nifty gainer on Tuesday. This happened after the UP (Uttar Pradesh) state government waived the registration fee.

Maruti Suzuki India, the largest automaker in India, saw its shares rise 5% in early trade today, reaching ₹12,654 per share. This increase followed the UP government’s decision to waive registration fees on hybrid cars. Maruti Suzuki has a strong presence in this market.

According to industry sources, the on-road prices of strong hybrid cars have decreased by up to Rs 4 lakh in Uttar Pradesh due to this fee waiver aimed at promoting green technology.

To encourage green mobility, the state government announced a 100% registration fee waiver on strong hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), according to recent reports.

This decision led to a 100% tax waiver, offering potential benefits for customers up to Rs 3.5 lakh and benefiting companies like Maruti Suzuki, Toyota, and Honda Cars.

HEVs and PHEVs both use an internal combustion engine along with an electric motor. The main difference is that PHEVs have a larger battery that needs charging from an external power source.

Among listed companies, Maruti Suzuki India is a leading car maker in the Indian hybrid market.

Estimates suggest that the registration waiver could reduce the on-road price of hybrid cars by up to ₹4 lakh. Maruti Suzuki is expected to benefit significantly as many of its models have hybrid features.

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 uses HEV technology in the City e-sedan.

Besides electric vehicles, Indian car manufacturers are also adopting various carbon reduction technologies, like hybrids, CNG, and biofuels (ethanol, bio-gas), to enhance decarbonization efforts and improve India’s energy security.

Hybrid electric cars and plug-in hybrid electric vehicles both use an internal combustion engine along with an electric motor. The key difference is that PHEVs use a larger battery that requires external charging.

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Maruti introduced one of the world’s best strong hybrid-electric technologies with the Grand Vitara in FY23. It strengthened its product lineup, especially in the SUV segment, with the launch of the Grand Vitara and Brezza.

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