EV, hybrid buyers in UP to pay full road tax again as policy expires

New Delhi: Electric and hybrid car buyers in Uttar Pradesh will now have to pay full road tax and registration fees again. The state government’s exemption policy for electric and hybrid vehicles officially expired on October 13 and was not renewed. Toyota and Maruti dealers from Noida and Greater Noida have confirmed that starting October 14, new registrations will attract the standard 8–10% road tax depending on the vehicle’s price.

The earlier tax waiver had helped reduce on-road prices for many popular hybrid and electric models, by as much as ₹2 to ₹4 lakh, and boosted demand across the state. Uttar Pradesh had briefly become one of the country’s biggest markets for hybrids, with long waiting periods for models like the Toyota Hyryder, Innova Hycross, Maruti Suzuki Grand Vitara, and Honda City e:HEV. That price advantage is now gone.

Under the state’s 2022 Electric Vehicle Policy, the tax exemption was meant to promote cleaner mobility. Initially, it covered only electric vehicles, but from mid-2024, the waiver was extended to strong and plug-in hybrids as well. The benefit ended on Sunday without any official extension.

However, the Uttar Pradesh government has now revised its EV policy with a focus on promoting local manufacturing. From October 14, 2025, only electric vehicles that are manufactured or assembled in the state will qualify for a 100% road tax and registration fee rebate. The incentive will remain valid till October 13, 2027.

Officials said the move is designed to support the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives by encouraging companies to set up EV production facilities within the state. Buyers of vehicles produced outside Uttar Pradesh, including several models from other parts of India and abroad, will no longer receive any subsidy or tax relief.

For buyers, this means higher on-road prices across both electric and hybrid categories. For example, the Toyota Innova Hycross Hybrid, which earlier benefited from the waiver, will now cost roughly ₹2.5 lakh more in Lucknow. Similarly, the Maruti Suzuki Grand Vitara Hybrid will see its on-road price rise by about ₹1.8 lakh. 

Dealers from Noida and Greater Noida said that the last day to avail the benefit was October 13. A senior executive from Lucknow mentioned that all new registrations from October 14 onward would include standard road tax and registration charges.

Those looking to buy electric vehicles will also need to ensure that the car they are purchasing qualifies as "manufactured in Uttar Pradesh” to be eligible for the revised subsidy. Buyers will have to apply through the state’s EV Subsidy Portal, where verification will be done by the local RTO office.

The decision is expected to attract major EV manufacturers to set up facilities in Uttar Pradesh over the next two years. At the same time, consumers may face fewer choices and higher prices in the short term. EVs and hybrids from brands such as Hyundai, Tata, BYD, and MG, most of which assemble vehicles outside the state, will not qualify for the rebate.

Industry experts say the state’s focus has now shifted from direct consumer benefits to long-term industrial growth. If successful, it could help Uttar Pradesh become a key player in India’s EV supply chain.