09 Jul , 2024 By : Debdeep Gupta
Maruti Suzuki India's shares surged nearly 5 percent to Rs 12,615 per share on July 9, emerging as the top Nifty gainer following the Uttar Pradesh (UP) government's announcement of a complete waiver of registration tax on strong hybrid electric cars (HEVs) and plug-in hybrid electric vehicles (PHEVs) with immediate effect.
This move benefits Maruti Suzuki's Grand Vitara SUV and Invicto MPV, both featuring strong hybrid technology.
The Grand Vitara is equipped with a hybrid powertrain consisting of a 1.5-litre petrol engine (92PS/122Nm) and an electric motor (80PS/141Nm). Similarly, the Maruti Suzuki Invicto, a variant of the Toyota Innova Hycross, integrates a 2.0-litre petrol engine paired with an e-CVT, delivering a combined system power of 186PS (engine power: 152PS, motor power: 113PS).
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.
Under this initiative, buyers in UP stand to save over Rs 3 lakh on the Maruti Suzuki Invicto and more than Rs 2 lakh on the Maruti Suzuki Grand Vitara.
Typically, the UP government charges an 8 percent road tax on vehicles that cost less than Rs 10 lakh and a 10 percent road tax on vehicles that cost above Rs 10 lakh (ex-showroom).
With this new directive, hybrid vehicles are now grouped with electric vehicles for exemption in registration fees. Around 100 strong hybrid cars were sold in UP in FY24.
According to FADA, the automobile dealers association, UP is one the largest markets for passenger vehicles in India with retail sales of 2.3 lakh units in the first half of this year, up 13 percent compared to 2.08 lakh units in the year-ago period.
So far this year, shares of Maruti Suzuki surged over 22 percent, outperforming a 12 percent rise in the benchmark Nifty 50 index.
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