Delhi EV Policy 2.0 Sparks Debate Over Hybrid Vehicle Incentives

The Delhi government has extended its current Electric Vehicle (EV) Policy by 3 months due to the complexity of proposals in the new draft. This decision came after a Cabinet meeting led by Chief Minister Rekha Gupta. The draft policy, called Delhi EV Policy 2.0, has been shared with automakers for their feedback.
Why is the Delhi EV Policy 2.0 Controversial?
The biggest concern is the proposal to offer the same incentives to hybrid vehicles as fully electric ones. These incentives include road tax and registration fee waivers, which are currently reserved for electric vehicles only. This move has upset major carmakers like Hyundai, Tata Motors, Mahindra & Mahindra, MG Motor India, and Kia.
These companies argue that hybrid vehicles still produce emissions, even if they are lower than regular petrol or diesel vehicles. They feel that incentives should only go to vehicles with zero emissions, especially since they have already made large investments in EV technology.
If this rule stays, it could benefit brands like Maruti Suzuki, Toyota, and Honda, which already have strong hybrid models.
Other Big Changes in the Draft
- No more CNG autos: From August 15, 2025, registration of new CNG auto-rickshaws will stop, and old permits will not be renewed.
- Ban on fuel-based two-wheelers: A total ban on petrol, diesel, and CNG two-wheelers is being considered from August 15, 2026.
- Incentives for women: Women buying electric two-wheelers can get up to ₹36,000 in incentives.
- Other subsidies: A ₹10,000 per kWh purchase subsidy is planned, capped at ₹30,000.
- New jobs and infrastructure: The policy aims to create 20,000 jobs and set up many charging and battery-swapping stations across the city.
Conclusion
Delhi EV Policy 2.0 shows the city’s serious push towards clean mobility. However, the inclusion of hybrid vehicles in EV benefits has created tension with leading carmakers. As discussions continue, all eyes are on how the final policy will balance innovation, environment, and industry investments.
Read more on: Delhi EV WhatsApp Chatbot: A Digital Step Towards Green Mobility
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Apr 24, 2025, 3:44 PM IST

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