Delhi’s Draft EV Policy Backs Hybrids With Tax Perks: Could This Slow The All-Electric Push?

In a significant development for the electric vehicle (EV) sector, the Delhi government has unveiled its draft EV Policy 2.0, proposing tax waivers for hybrid vehicles for the first time, reports Mint. This shift represents a departure from the previous focus solely on Battery Electric Vehicles (BEVS), expanding the scope to include Strong Hybrid Electric Vehicles (SHEVS) and Plug-in Hybrid Electric Vehicles (PHEVS) in its clean mobility strategy.

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The draft policy suggests that hybrid vehicles with an ex-showroom price of up to Rs 20 lakh will be eligible for full exemptions on road tax and registration fees. This initiative aims to reduce the cost of such vehicles and encourage consumers to voluntarily transition to their use, as highlighted in the policy draft.

In addition to hybrid vehicles, the policy continues to support BEVs, offering complete waivers on road tax and registration fees for those priced at Rs 20 lakh or below. However, the incentives for SHEVs and PHEVs will only come into effect once these vehicles are officially categorised by relevant authorities such as the Ministry of Heavy Industries or the Ministry of Road Transport & Highways.

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While the proposal has been met with optimism by some, it has raised concerns among automakers. Industry experts fear that this broader focus on hybrid vehicles could hinder the progress toward full electrification and may dampen investments in BEV technology. There is a belief that if Delhi sets a precedent, other states might adopt similar policies, which could stall the development of a robust all-electric vehicle ecosystem.

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