Delhi Government Plans Hybrid Car Tax Incentives Under EV Policy

The Delhi government's draft EV Policy 2.0 proposes extending road tax and registration waivers—currently reserved for fully electric vehicles—to strong and plug-in hybrid vehicles priced up to Rs 20 lakh, sparking significant debate in India's automotive sector. While the move is intended to accelerate clean mobility and reduce pollution, several domestic carmakers heavily invested in battery electric vehicles (BEVs), such as Tata, Mahindra, and Hyundai, have voiced concerns that equating hybrids with BEVs could undermine investments in zero-emission technology and set a precedent for other states. These automakers argue that hybrids, though cleaner than conventional cars, still rely on fossil fuels, while companies focused on hybrid technology, like Maruti Suzuki, Toyota, and Honda, stand to benefit. The policy also aims to limit the number of gasoline and diesel cars per family and ban sales of fuel-guzzling two-wheelers from 2027, while introducing new levies on petrol sales to further support EV adoption. In response to the controversy and requests for industry feedback, the government has extended the current policy by three months for further consultation. The final policy's incentives for hybrids will only take effect once official definitions for strong and plug-in hybrids are established by the central government.