UP pulls the plug on hybrid incentives, backs electrics

The battle between electric and hybrid vehicles in India has taken a fresh turn, with Uttar Pradesh— the largest state offering incentives for hybrid cars—deciding to withdraw all financial benefits for hybrids and back only pure electric vehicles (EVs).

- Nehal Chaliawala & Ayaan Kartik

The incentive will be offered regardless of where the cars are manufactured.

(REUTERS)

The move marks a policy win for homegrown EV makers Tata Motors and Mahindra & Mahindra, and a setback for Japanese hybrid car manufacturers Toyota, Honda Cars and Maruti Suzuki.

UP’s high-level empowered electric vehicle committee (HLEEVO), led by state chief secretary Shashi Prakash Goyal took the decision at a meeting on 10 October.

“It was observed that incentives should be strategically implemented towards encour-

aging the indigenous manufacturing of pure electric vehicles and related technologies,” minutes of the meeting said, of which Mint has seen a copy.

Only Haryana and Chandigarh now have incentives for hybrids in place. Chhattisgarh and Rajasthan withdrew similar benefits earlier this year. Delhi's policy, which proposes incentives for both EVs and hybrids, remains in draft stage.