Hybrid Cars May Get EV-Like Incentives Under New Delhi Policy Draft

The Delhi government's draft Electric Vehicle Policy 2.0 has triggered widespread debate in the automotive industry following a proposal to offer the same incentives to hybrid vehicles as those extended to fully electric vehicles. The new draft policy, recently circulated among manufacturers for feedback, was discussed at length during a Delhi Cabinet meeting chaired by Chief Minister Rekha Gupta. In response to the ensuing concerns and the complexity of implementation, the government has opted to extend the existing EV policy for an additional three months, providing more time for consultation and deliberation. 

Also Read: Delhi EV Policy 2.0 To Be Announced Today: What To Expect?

According to a report by CNBC TV18, the draft EV Policy 2.0 proposes that hybrid vehicles—known for combining internal combustion engines with electric propulsion—receive road tax and registration concessions similar to battery electric vehicles (BEVs). This inclusion has sparked criticism from EV-focused automakers, who argue that hybrids, despite their lower emissions compared to conventional vehicles, still rely on fossil fuels and should not be equated with zero-emission technologies. 

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Industry players including Hyundai, Tata Motors, Mahindra, MG Motor India, and Kia are reportedly preparing to engage directly with Delhi government officials to convey their objections. These companies have collectively invested billions in India’s EV transition, betting on a regulatory environment that favours full electrification. For them, incentivising hybrids potentially undermines those investments and the policy consistency required to scale electric vehicle adoption. 

In contrast, companies such as Maruti Suzuki, Toyota, and Honda, which have emphasised strong hybrid technology in their Indian portfolios, are poised to benefit significantly should the draft proposals be enacted in their current form. These automakers maintain that hybrids offer a practical transition solution, especially in a market like India where EV infrastructure remains limited.

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Apart from the hybrid clause, the draft also introduces several sweeping measures aimed at accelerating the city’s shift toward clean mobility. Key among them is a proposal to halt the registration of new CNG auto-rickshaws from August 15, 2025, with no renewal of existing permits beyond that date. Furthermore, the policy hints at a complete ban on petrol, diesel, and CNG two-wheelers beginning August 15, 2026, signaling the government’s long-term vision to phase out fossil fuel-powered vehicles entirely. 

Also Read: Delhi EV Policy 2.0: What Does It Mean For You?

On the incentive side, the draft outlines several financial benefits to stimulate EV adoption. These include a subsidy of up to ₹36,000 for women buyers of electric two-wheelers, and a purchase subsidy of ₹10,000 per kWh, capped at ₹30,000, for other buyers. Additionally, the government aims to generate 20,000 new jobs and expand the city’s EV infrastructure by building an extensive network of charging and battery-swapping stations.