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Hybrids to Receive Same Waivers as EVs!

Delhi’s new EV push includes hybrids, but not everyone’s on board. Here’s what the policy means for your next car.

Written by: Shreem Nema| Articles | Apr 24, 2025 6:30 PM
Hybrids to Receive Same Waivers as EVs!

In a major revamp of its electric vehicle policy, the Delhi government has proposed to give the same road tax and registration fee exemption currently being offered to electric vehicles (EVs) to strong hybrid vehicles as well. This has been proposed in the draft version of the Delhi EV Policy 2.0, which aims to accelerate the shift towards cleaner mobility solutions in the city.

The proposed new policy, to be announced later, aims to redefine green transport by adding hybrid cars to the list of vehicles that can be supported with financial incentives. If the policy is implemented, hybrid car owners will get the same financial relief as buyers of battery electric vehicles. This will benefit auto manufacturers like Maruti Suzuki, Toyota, and Honda, etc which have a strong grip over hybrid offerings in the Indian market. But the suggested policy has raised eyebrows in the automotive industry. Automakers such as Tata Motors, Mahindra & Mahindra, Hyundai, MG Motor India, and Kia have raised concerns that hybrids still retain internal combustion engines and fall short of the zero-emission goals that define EV incentives. 

Also Read- Maharashtra Proposes Toll-Free Travel for EVs?

The Delhi government has also suggested further measures to enhance electric mobility under the draft, it is said. These involve stopping the registration of new CNG auto-rickshaws from August 15, 2025, and a proposal to ban the registration of all petrol, diesel, and CNG two-wheelers from August 15, 2026. The policy also offers special incentives to women buyers, who will get incentives up to ₹36,000. Others will be provided with a subsidy of ₹10,000 per kWh, capped at ₹30,000.

The pre-policy also stresses on creating strong infrastructure and employment opportunities in the EV sector. It recommends having a widespread network of charging and battery-swapping centers and aiming for the creation of 20,000 new jobs in the process. This new framework is a build-up on the efforts made by Delhi's first EV policy, which was launched in August 2020. The first policy was all battery electric vehicles and introduced a multitude of incentives to drive the adoption of EVs, putting Delhi among the highest EV-penetrated states.

Although the use of hybrids is a new, welcome strategy, it has also brought with it a policy discussion about what precisely constitutes a green vehicle. As the Delhi government prepares to seal the second phase of its EV policy, industry players, green activists, and policymakers are anxiously awaiting some clarity on how this new direction will shape the city's path to cleaner mobility.

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