Delhi EV Policy Nears Finish Line, Hybrid Incentive A Sticking Point

Delhi's EV Policy 2.0 has entered its final stages, but one key question continues to hold up the policy: should Delhi back only electric vehicles or also extend incentives to strong hybrids as a transition technology?

The decision has emerged as one of the last major sticking points delaying the policy's finalisation, which is now expected by the end of the month.

Sources told NDTV that a proposal to offer a 50 per cent waiver on road tax and registration fees for strong hybrid vehicles remains under consideration and is likely to feature in the final version, despite opposition from sections of the EV ecosystem that favour an EV-only incentive structure.

Hybrid Incentive At Centre Of Policy Debate

Under the draft EV Policy 2.0, strong hybrid vehicles priced up to Rs 30 lakh (ex-showroom) were proposed to receive a 50 per cent waiver on road tax and registration charges. In comparison, battery electric vehicles in the same price bracket would receive a full exemption.

The proposal has triggered an intense debate and has become one of the last unresolved issues in the policy drafting process.

Government sources said several stakeholders view strong hybrids as a “transition technology” that can help reduce fuel consumption and emissions while the EV ecosystem continues to expand.

Stakeholder Feedback Shapes Final Decision

After releasing the draft policy earlier this year, the Delhi government sought feedback from industry, experts and the public before moving towards finalisation.

During these discussions, several participants argued that strong hybrid vehicles offer a practical middle path for consumers who are not yet ready to switch to fully electric vehicles because of concerns over charging infrastructure, driving range and upfront costs.

Supporters of the proposal say hybrids offer better fuel efficiency and lower emissions than conventional petrol vehicles, making them a useful bridge technology during the transition to cleaner mobility.

Sources indicate that this argument has gained traction during consultations, strengthening the case for retaining the incentive in the final policy.

EV-Only Push Raises Concerns

The proposal has also drawn criticism from sections of the clean mobility sector, which argue that incentives should be reserved for zero-tailpipe-emission vehicles.

EV-focused stakeholders contend that extending tax benefits to hybrids, which still rely on internal combustion engines, could dilute the objective of accelerating full electrification of transport in the capital.

They argue that policy support should be prioritised for battery electric vehicles to ensure faster adoption and infrastructure expansion.

What It Means For Buyers

If the proposal is approved, strong hybrid vehicles priced up to Rs 30 lakh could become more affordable in Delhi through lower road tax and registration charges.

The move would also provide a significant policy boost to automakers investing in hybrid technology, even as the broader market gradually shifts towards full electrification.

Final Policy Expected Soon

The Delhi government is reviewing the feedback received during consultations and is expected to finalise EV Policy 2.0 by the end of the month.

The final decision could shape whether Delhi's clean mobility strategy remains focused exclusively on EVs or adopts a broader transition pathway that includes hybrid technology.