Toyota and Maruti Suzuki Push Hybrid Sales in Uttar Pradesh Amid Tax Waivers, Rivals Concerned
Japanese automakers Toyota and Maruti Suzuki are ramping up marketing efforts for their hybrid vehicles in Uttar Pradesh, leveraging recent state tax waivers that offer significant savings to buyers. The tax incentives, which allow customers to save up to $15,800 on luxury models like the Toyota Vellfire, have led to a surge in showroom enquiries, with sales teams intensifying efforts to promote hybrids. This move follows successful lobbying by Toyota, securing tax benefits in a state that accounts for 10% of India’s car sales.
The tax waiver, however, has created a divide within India’s auto industry. Rivals Tata Motors, Mahindra and Mahindra, and Hyundai have expressed concerns that their electric vehicle (EV) sales will suffer, having unsuccessfully lobbied to reverse the July decision. With hybrid vehicles now taxed at 43% compared to the 48% for gasoline cars, industry players worry other states might adopt similar measures, undermining the EV market’s growth potential.
As hybrid sales climb, Toyota and Maruti Suzuki dealerships have actively encouraged customers to capitalize on the tax breaks. Sales managers at various showrooms have reported a 50% increase in hybrid sales, advising potential buyers to act quickly before the incentives potentially expire. The success of this strategy highlights the ongoing debate between hybrid and EV technologies in India’s evolving automotive landscape.
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