A few days ago, the Uttar Pradesh government issued a circular stating that Hybrids being registered in UP will not be subject to Road Tax.
This is the circular, courtesy CNBC TV-18 X post.
The wording says that it is registration tax and not road tax, but the news outlets and the stock markets believe otherwise. They might be true too. My Hindi isn’t that strong.
While writing this article, another CNBC TV18 post caught my attention.
The EV industry should welcome the tax waiver policy. Yes, welcome it. Thousands of more people are going to experience what it is to drive a partial electric car. That is a thousand more customers who were not considering alternate fuel vehicles as a choice. We might look forward to atleast some reduction in vehicular emissions, which is good for our citizens.
Hybrid OEMs are going to keep harping on ‘Kitna deti hai’ (slang for mileage). That’s what they know and that’s how they will sell. EV OEMs have an expanded opportunity here because the customers are willing to listen something beyond petrol / diesel / CNG. Great advertisements for EVs will be one hook to get the customers.
There is always going to be a transition phase to adopting any new technology. The early adopters have made the switch to electric and are mostly loving the driving experience. The next set of customers are going to demand newer and better products. They are also going to demand lower price points. The global economies of scale are tilting in the favour of EV OEMs and the EV ecosystem.
EV OEMs - I am looking at Tata and MG - I genuinely believe these are the only two OEMs capable in the market right now to put out a product that works and have the massive support system to service these cars. They have to get more customers in the door and get them to adopt more electric vehicles. Tata, MG and Mahindra - with their local assembly have the power to reduce prices and bring it on par with Hybrids, if not ICE.
The CPOs need to look at investing more money in the charging ecosystem and remove barriers to continued EV adoption. If we surveyed a bunch of EV owners, the first wishlist for them would be a singular charging app. It is in your hands to decide what to do and how to shape the industry going forward.
This as a clarion call. If one government has done it, more will. It helps them because it is a populous move. The Central Government gave the EV ecosystem some head start, but the Hybrids are in the rear view mirror. Let’s roar and build the EV ecosystem.
I don't thinks there's any reason to consider Road tax as the circular only talks about registration fees. Also, I don't think it's a waiver, it's just a discount on fees. True that it would mean encouraging change of mindset and even if not 'Kitna deti hai' is even better as Hybrids have better milage as compared to ICE.
There as been a lot of PR/Content about hybrids in the last couple of months - led by Maruti Suzuki in business newspapers.