Hybrid Cars May Receive EV-Level Incentives Under Delhi's New Draft Policy

The new draft of Delhi's Electric Vehicle Policy 2.0 has created quite a buzz on the internet and in the automotive industry for what it proposes. And the latest information suggests the government will offer hybrid vehicles the same incentives currently granted to fully electric vehicles. Under the proposed policy, road tax and registration fees would be waived for electric vehicles and hybrid models priced up to Rs 20 lakh (ex-showroom) in the Delhi-NCR region. However, these benefits are limited to strong hybrids and plug-in hybrids, mild hybrids would not qualify for the incentives.

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To allow for broader consultation and to address concerns about the policy’s execution, the Delhi government previously decided to extend the current EV policy by three more months. The policy, which is under review and has been shared with vehicle manufacturers, was also a key topic during a recent Delhi Cabinet meeting chaired by Chief Minister Rekha Gupta.

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The inclusion of hybrid vehicles in the policy could raise concerns among some automakers that have heavily invested in electric vehicle development, including Tata Motors, Mahindra, Kia, and Hyundai. Maruti Suzuki, Toyota, and Honda currently offer strong hybrid vehicles in the Indian market.

The decision to execute the policy could very well influence other states to adopt the same. In fact, Uttar Pradesh set a precedent in July 2024 by becoming the first state to waive road tax and registration fees for hybrid vehicles.