Following a fresh report, the draft Delhi EV Policy 2.0 provides the same concession to hybrid cars as is availed by fully-electric cars. The draft Delhi EV Policy will give road tax and registration relief on hybrid cars, according to the report. This has raised alarm among leading carmakers.
The Delhi Electric Vehicles Policy 2.0, released for industry comments on Tuesday, provides incentives on electric vehicles costing up to Rs 20 lakh (ex-showroom). Extension of the incentive on hybrid vehicles has drawn criticism.
Carmakers, including Hyundai, Mahindra & Mahindra, MG Motor India, Tata Motors, and Kia, are likely to sit down with Delhi government officials to flag their concerns. These firms have committed large sums to EV development and introduction, and understandably are displeased with the policy change.
The firms believe that hybrids do not need to be incentivized as there are emissions, albeit very low compared to conventional combustion engine cars. There is no concession for hybrid cars in the current Delhi EV policy. If the proposal is retained in the final policy, it will be a huge encouragement for models like Maruti Suzuki, Toyota, and Honda that have strong hybrid cars in their portfolio.
Other Proposals regarding Delhi EV Policy 2.0
According to the draft policy, new registration of CNG auto-rickshaws will be stopped from August 15, 2025, and current permits will no longer be renewed. The total ban on petrol, diesel, and CNG two-wheelers is also under consideration from August 15, 2026.
The incentives suggested are a maximum of Rs 36,000 for women buying electric two-wheelers and a purchase subsidy of Rs 10,000 per kWh up to a maximum of Rs 30,000 for other customers. The plan also suggests the creation of 20,000 new jobs and a city-wide network of charging and battery-swapping points.
Conclusion
The draft Delhi EV Policy 2.0 has caused considerable controversy, largely because of its suggestion to give hybrid vehicles EV-like concessions. Although this action could encourage greater use of cleaner mobility solutions, it could also jeopardize the investments of manufacturers who are solely focused on EVs. As the Delhi government releases the draft policy for industry comments, in the weeks to come, policymakers and automotive players will have a rollercoaster ride of intense deliberations. The policy's final version will have to tread a fine line—promoting sustainability without letting India's expanding EV ecosystem suffer from the loss of momentum.
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