Toyota and Maruti have intensified their efforts to boost hybrid car and SUV sales in Uttar Pradesh following the state's recent waiver of registration charges for strong hybrid vehicles. Toyota dealers in UP have reported a 50 percent increase in hybrid sales, while Maruti has said that inquiries for hybrids have nearly doubled since the tax waiver

1. Both brands are experiencing added footfall at their UP outlets
2. Most hybrid models see price reductions by around Rs 2 lakh
3. Rival brands with no hybrid models express concern

Toyota’s hybrid line-up is quite expansive, including the likes of the Urban Cruiser Hyryder, the Innova Hycross, and Camry sedan and the Vellfire MPV, while Maruti Suzuki has the Grand Vitara and the Invicto. 

Showroom inquiries for hybrids have doubled: Maruti Suzuki

At the forefront of this push, Toyota has long favored hybrids over EVs, citing concerns over charging infrastructure and the high cost of electric vehicles.

This strategy seems to be paying off, especially in markets like Uttar Pradesh, where hybrids offer a more accessible alternative to the still-developing EV sector. "Showroom inquiries have nearly doubled since the benefits have been effected for hybrids," Reuters quoted Rahul Bharti, executive director for Corporate Affairs at Maruti, as saying.

Dealerships across Uttar Pradesh are now under pressure to meet stringent sales targets. "We have been asked to sell a minimum of 250 cars in a month. There is a lot of pressure. We are trying to shift all sales to hybrids," a Maruti salesperson told Reuters. 

This push has resulted in notable increases in hybrid car sales. Praveen Saxena, a sales manager at a Toyota showroom in Kanpur, revealed that his dealership's hybrid car sales had surged by 50 percent after the tax waivers were announced. Saxena emphasised the urgency of the situation, advising customers to purchase quickly, as "no one knows how long the scheme would run," Reuters quoted him as saying.

The tax waivers introduced by the Uttar Pradesh government offer substantial savings for hybrid car buyers. For instance, the luxury Toyota Vellfire model now comes with a tax saving of approximately Rs 13,09,400, while the Camry sedan benefits from a Rs 4,31,600 reduction. Prices for the Toyota Hyryder have dropped by around Rs 2 lakh, Hycross by around Rs 3.11 lakh, and Maruti hybrids by Rs 2.8 lakh. Honda City hybrid prices are also down by Rs 2 lakh, dealers tell us.

According to Reuters, there has been significant lobbying by brands both for and against this policy. Maruti Suzuki and Toyota have responded with aggressive marketing campaigns, utilising both digital and traditional channels to reach potential customers.

Rival brands express concern

The strategic focus on hybrids marks a divergence within India's auto industry. While Maruti Suzuki and Toyota celebrate their success, rivals like Tata Motors, Mahindra & Mahindra, and Hyundai express concerns that the tax waivers for hybrids will negatively impact the sales of pure electric vehicles (EVs). These companies had lobbied to reverse the July decision, fearing that other states might adopt similar measures, but their efforts were unsuccessful.