Hybrid incentives scrapped as Delhi’s draft EV policy shifts focus entirely to pure electric vehicles, offering tax waivers until 2030 while mandating phased electrification across segments.
Delhi’s draft electric vehicle (EV) Policy for 2026-2030 proposes full exemptions from road tax and registration fees only for pure EVs, reversing its earlier stance on hybrids.
The draft, reviewed by Mint, states that all EVs registered in the National Capital Territory (NCT) will be exempt from these charges until 31 March 2030, though cars priced above ₹3 million will not qualify.
The move excludes hybrid vehicles from incentives, a shift from last year when the government considered extending waivers to them. Delhi’s decision follows Uttar Pradesh’s October 2025 withdrawal of hybrid benefits, leaving Haryana and Chandigarh as the only regions still offering such support.
Automakers such as Maruti Suzuki and Toyota Kirloskar, which have invested heavily in hybrids, face a setback, while EV-focused firms, including Tata Motors, Mahindra & Mahindra and Hyundai, welcomed the policy as a boost to zero-emission adoption.
The draft also outlines scrappage incentives for buyers retiring older vehicles, alongside electrification mandates across multiple segments. Two-wheelers powered by fossil fuels will not be registered from April 2028, while three-wheelers face a similar ban from January 2027.
Moreover, school buses must meet phased electrification targets, beginning with 10% in the first year and rising to 30% by FY2030. Government fleets are also expected to transition.
Experts argue that electrification is critical to tackling Delhi’s severe winter air pollution, though some caution against over-reliance on a single technology. Concerns include battery raw material security and the readiness of local electrical infrastructure to handle increased charging demand.
A 2026 Deloitte study found that hybrids remain popular among consumers, balancing affordability and practicality, but policymakers emphasise that sustained reductions in emissions require prioritising zero-tailpipe technologies.
