Uttar Pradesh Ends Road Tax Waiver for EVs and Hybrids as Policy Expires

UP’s EV and hybrid tax waiver lapsed on October 13, raising on-road prices by up to Rs 4 lakh as the state chooses not to renew incentives.

By Akbar Merchant

16 Oct 2025

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Honda City hybrid prices in UP are now up by around Rs 2 lakh due to end of waiver.

The Uttar Pradesh government has allowed its road tax and registration fee waiver for electric and hybrid vehicles to lapse with effect from October 13, 2025, choosing not to extend the incentives under its 2022 Electric Vehicle Policy. The waiver offered full exemption from road tax and registration charges for electric vehicles and, from mid-2024, for strong and plug-in hybrids as well. With the exemption period now expired, buyers of both new EVs and hybrids will face higher on-road prices going forward.

New car dealers in the state have confirmed that every new vehicle registration from October 14 onward once again attracts the standard 8–10% road tax, depending on the ex-showroom price bracket.

The earlier waiver had temporarily reduced prices of several hybrid and electric models — including the Maruti Suzuki Grand Vitara, Invicto, Toyota Urban Cruiser Hyryder, Innova Hycross, Camry, and Honda City e:HEV — by Rs 2–4 lakh, significantly improving their value proposition. That price advantage had fueled a surge in hybrid sales, making Uttar Pradesh one of India’s largest hybrid markets during the exemption period.

New car prices for hybrid, electric models increases sharply in UP

With the waiver’s expiry, on-road prices are now set to rise sharply, potentially dampening short-term demand for hybrid and electric vehicles in the state. However, this development comes even as overall GST on hybrids was recently reduced, marginally lowering their effective cost at the national level.

Industry observers say the rollback may slow adoption in non-metro markets, especially where the tax savings had made hybrids particularly appealing as fuel-efficient alternatives to petrol SUVs.

Policy renewal yet to be announced

The Uttar Pradesh Electric Vehicle Policy 2022 was framed to encourage cleaner mobility. However, as of now, no fresh notification or revised EV policy has been issued by the state government to extend or replace the lapsed scheme.