Toyota Wins Important Hybrid Vehicle Tax Reduction in India
Most-populated state maintains its waiver of local tax effectively slashes 10% off retail prices of some hybrid models after campaign by the Japanese giant.
Toyota has won its campaign to have registration taxes waived for hybrid-powered vehicles in India's most-populated state. The move was opposed by other automakers pushing battery-electric vehicle uptake in the market.
The state of Uttar Pradesh says it will not reverse its decision to waive the tax on hybrids and maintain the technology’s price advantage over BEVs, Reuters reports.
Automakers including the Hyundai Motor Group, Tata Motors and Mahindra & Mahindra had lobbied against the move, arguing it will slow the uptake of BEVs and impair BEV investment plans.
Those automakers now worry that other states will follow suit and allow some hybrids to trade at a sticker price 10% cheaper than with the tax in place.
India imposes a federal tax of 5% on BEVs while hybrids nominally are taxed at 43%, just below the 48% for gasoline cars. State road and registration taxes are extra and determined by local governments.
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