Maruti Suzuki India Ltd. shares value has increased around 5 per cent on Tuesday making it the top gainer on the Nifty 50 index. The change came as the Uttar Pradesh government reportedly announced to waive off registration fees on Hybrid cars.
The stock of the company have risen by 24 per cent so far in 2024. The move of the government is favourable for other companies manufacturing hybrid cars like Honda and Toyota as well.
UP government issued a new order effective from July to promote green economy. Zero registration fees for hybrid electric vehicles is a step in that direction and to increase sales of hybrid cars.
Advertisement
As the Indian economy is slowly transiting towards green economy, the automobile industry focus has shifted over the past few years towards manufacturing hybrid and battery electric vehicles. UP government's decision will encourage others in automobile sector to take up a similar path.
Currently, under the hybrid car category Maruti Suzuki offers Grand Vitara and Invicto. Reportedly, in the near future Maruti expects a quarter of its sales will be of hybrid vehicles.
The incentive offered by the government will help the country at large in adopting hybrid vehicles as a sustainable mobility solution before fully making transition to Battery Electric Vehicles (BEVs).
Advertisement
Zero registration fee will also decrease the financial cost for the hybrid manufacturing company and eventually will help in making the prices of these vehicles more affordable for the end users.
Uttar Pradesh is the most populated state in India and has a huge potential market for passenger vehicles. According to reports, from January to June 2024 the sales of passenger vehicles in the state have increased by 13.5 per cent from the previous calendar year to 2.36 lakh units.
