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UP Tax Waiver Boosts Maruti Suzuki Sales; 13.46% Growth in 2024

Maruti Suzuki India Ltd. shares witnessed a sharp rise today after a modest decline last week during the trading session. The stock closed at ₹12,026 on Monday evening, initially seeing a slight dip but quickly rebounding to touch a high of ₹12,955 during the trading session. Around 2 PM, the shares were trending at ₹12,870, showing an increase of more than 7%.

The announcement made by Uttar Pradesh Chief Minister Yogi Adityanath on Tuesday is believed to have driven a significant surge in Maruti Suzuki’s shares. The UP government has waived off registration fees on hybrid vehicles through an order issued on July 5, 2024. This decision is expected to benefit Maruti Suzuki and other companies, leading to a rise in their share prices.

Hybrid Car Tax Benefits

The decision by the Uttar Pradesh government is expected to benefit companies like Maruti Suzuki, Toyota, and Honda. Following this announcement, vehicles priced below 10 lakh rupees could save 8% in road tax, while those priced above 10 lakh rupees could save 10%. This will apply after the state government waives off registration fees for hybrid cars. Hybrid vehicles are capable of running on both petrol and battery power. Cars like Maruti Suzuki’s Grand Vitara and Invicto, Toyota’s Hyryder and Innova Hycross, and Honda’s City (hybrid version) will benefit from this discount.

Hybrid Car Sales Boost

Following the announcement of the discount, it is expected that sales of hybrid cars will increase in Uttar Pradesh. Buyers of hybrid cars could save up to 1.5 lakh rupees after this discount. The Uttar Pradesh government recently waived the registration fee for hybrid cars.

It is believed that this move will boost sales of hybrid cars in Uttar Pradesh in the coming times. Uttar Pradesh is one of the largest markets for cars in the country, accounting for more than 10% of cars sold nationwide. In the first six months of 2024, 2,36,097 cars were sold in Uttar Pradesh, which is 13.46% higher compared to the first six months of 2023.