Maruti Suzuki zooms 6%, becomes top Nifty gainer as UP waives registration fees for hybrid vehicles

Maruti Suzuki shares rise by 6% as UP government waives off registration tax on hybrid cars, offering potential benefits up to Rs 3.5 lakh for customers and leading companies. UP witnesses a significant increase in retail sales of passenger vehicles. The move aims to promote environment-friendly vehicles in the state.

Shares of rose 6% to reach a day’s high of Rs 12,736 on the BSE, emerging as the top Nifty gainer on Tuesday. This surge followed reports that the had waived registration taxes on hybrid cars as part of its initiative to promote environmentally friendly vehicles in the state.

The move resulted in a 100% 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.

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.

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The UP government currently charges an 8% road tax on vehicles that cost less than Rs 10 lakh, and a 10% 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% 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).

An MSIL dealer noted that while the current demand for strong hybrids in UP is low, the new policy could drive an increase in sales.

Shares of Maruti Suzuki have increased by 28% in the last one year while on a year-to-date basis, the stock has surged 23%.

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Source: Stocks-Markets-Economic Times