[volkman10]

Karnataka aims to do away with road tax and registration charges for hybrid cars that cost less than 30,000 dollars, versus 13% to 18% currently, as per the draft.

While India has focused on exemptions for electric cars, the move could make the state, home to the tech hub of Bengaluru, the second after northern Uttar Pradesh to provide tax breaks to hybrid cars.

The draft further noted that the state aims to bolster "clean mobility vehicle adoption," which encompasses EVs, some hybrids and hydrogen-based vehicles. However, there is no deadline to finalise and unveil the EV policy.

Over and above this, Karnataka aims to offer incentives of up to 25% on capital investments by those who make EVs or the components, which will differ as per the investment size and numbers employed, the draft stated.

The draft shows Karnataka is likely to offer financial incentives ranging from 15% to 25% of the investment made by companies in fixed assets, such as land and machinery, for new factories or to expand existing ones. This will also be applicable to battery component makers or those who also make EV charging gear, it noted.

The state's government has previously said it plans to raise up to $6 billion in new investments through a clean mobility policy, but has not made any other details public.



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[fordday]

This can be the best chance to grab a hybrid. Hope they make it a reality soon.

[CarguyNish]

Originally Posted by fordday

This can be the best chance to grab a hybrid. Hope they make it a reality soon.

How many hybrids are currently available within 25 lakhs range? I think 3 (Grand Vitara/Hyryder/City). So, basically more hybrid options will be better for customers.

[mercedised]

Could someone clarify why state governments are prioritizing discounts or waivers for electric vehicles (EVs) and hybrids? What do they aim to gain from this initiative? Since they benefit from VAT and cess on petrol and diesel, the revenues will decline with a shift to EVs. What is motivating this focus on waiver schemes? It’s intriguing to see our governments becoming more aware of environmental benefits; when did this shift occur?

[venkat_partha]

I hope this applies retrospectively.

[PreludeSH]

Originally Posted by mercedised

Could someone clarify why state governments are prioritizing discounts or waivers for electric vehicles (EVs) and hybrids? What do they aim to gain from this initiative? Since they benefit from VAT and cess on petrol and diesel, the revenues will decline with a shift to EVs. What is motivating this focus on waiver schemes? It’s intriguing to see our governments becoming more aware of environmental benefits; when did this shift occur?

I think its a way of incentivizing manufacturers to setup up units in case of some states. Promise such breaks which can then encourage manufacturers.

[AnkitShroff]

Originally Posted by CarguyNish

How many hybrids are currently available within 25 lakhs range? I think 3 (Grand Vitara/Hyryder/City). So, basically more hybrid options will be better for customers.

True. Having more options is always good news for the customers. With the EV market not picking up as expected, a number of manufacturers are shifting (at least partly) their focus to hybrids as well, hopefully this would mean more hybrids in future. We already have Maruti Suzuki bringing series hybrid from early next year

Originally Posted by PreludeSH

I think its a way of incentivizing manufacturers to setup up units in case of some states. Promise such breaks which can then encourage manufacturers.

With UP followed by Karnataka providing road tax incentive for hybrid cars, we will hopefully start to see other states following suit. In such a case, it makes sense for states to utilize the first mover advantage and bring investment/ manufacturing to their states by providing subsidies to manufacturers for local manufacturing

[Cresterk]

Originally Posted by mercedised

Could someone clarify why state governments are prioritizing discounts or waivers for electric vehicles (EVs) and hybrids? What do they aim to gain from this initiative? Since they benefit from VAT and cess on petrol and diesel, the revenues will decline with a shift to EVs. What is motivating this focus on waiver schemes? It’s intriguing to see our governments becoming more aware of environmental benefits; when did this shift occur?

Kickbacks from manufacturers and a green image I guess. Personally, I think anything that uses the roads needs to pay the RTO taxes. This will just lead to even more congestion as it is basically an incentive to buy cars in a time where even developed countries are focusing on improving public transport.

[Senotrius]

Something is better than nothing. It Can help reduce our fuel imports/dependence, even if only a little. Nothing wrong in this move I feel. Ideally, the govt should be improving public transit and infrastructure. Gadkari is trying his part wrt infrastructure at a National level.

[hummer]

Are we sure Karnakata govt is going to make this happen when struggling with funds? They are on the lookout to increase revenue by putting additional taxes on properties, vehicles etc, really surprised to hear this, however, I would be very happy if this news is true.

I checked with Ravindu Toyota management, they said these are rumors since Jan 2024, they didn't receive any update regarding this from TKM.

Never know Karnakata govt may decide to give a Deepavali gift to all Hybrid hunters

[gck_tourer]

I don't understand why they are quoting the value of car in terms of USD while giving this exemption. The USD INR rates are not pegged to each other. They keep fluctuating. If a car is on borderline USD 30K price, will they keep adjusting ex showroom price everyday? The regulations have to aim to make life simple for all stakeholders not complicate it. Also Toyota should launch a new base variant of Hycross strong hybrid falling in the bracket to take advantage of the regulation.

[volkman10]

Originally Posted by gck_tourer

I don't understand why they are quoting the value of car in terms of USD while giving this exemption. ...

Because the origin of this news is from Reuters.

[RRU]

Because it is attributed to Karnataka, I take this news with a barrel of salt. UP and Chandigarh are different states/UTs altogether.

Instead, the cash trapped Karnataka govt ought to focus on preparing itself for Day Zero!

[rakesh_r]

Originally Posted by RRU

Because it is attributed to Karnataka, I take this news with a barrel of salt. UP and Chandigarh are different states/UTs altogether.

Instead, the cash trapped Karnataka govt ought to focus on preparing itself for Day Zero!

Brace for further hike in fuel prices, if this happens.

[for_cars1]

Originally Posted by RRU

....I take this news with a barrel of salt. ....

+1, Anything that reduces revenue inflow will never be implemented here. This is the state that collects the highest taxes in the country.

Thinking this would be enacted is equivalent to day dreaming aka., "Mungeri-lal ke haseen sapne"