New Delhi: The BJP-led Delhi government doesn’t plan to offer incentives for hybrid vehicles, marking a reversal of its stand a year ago when it considered providing a full waiver on road tax and registration fees for them.
In the current draft of the Delhi EV Policy 2026-2030, the government of the National Capital Territory (NCT) has proposed a road tax and registration fee waiver only for pure electric vehicles. Mint has reviewed the draft of the policy.
“All electric vehicles… registered in the NCT of Delhi shall be granted 100% exemption from road tax and registration fees till 31 March 2030,” the government said in the draft, adding that electric cars priced above ₹30 lakh will not be eligible for this benefit.
Delhi’s U-turn follows a similar reversal in Uttar Pradesh in October, leaving only Haryana and Chandigarh providing hybrid vehicle benefits in one of India’s largest and automobile markets. It comes as a setback for Maruti Suzuki and Toyota Kirloskar Motor, which are betting on hybrids as Tata Motors, Mahindra & Mahindra, Hyundai Motor India and JSW MG Motor pitch for promoting EVs.
“We welcome this progressive step as EVs are an imperative to address air quality concerns and challenges in the Delhi‑NCR region. Such incentives will help accelerate EV adoption by encouraging more buyers to shift to zero‑emission vehicles,” a Tata Motors Passenger Vehicles spokesperson said.
Queries emailed to the Delhi transport minister, chief secretary, transport secretary, the ministry of heavy industries remained unanswered. Automakers Maruti Suzuki, Toyota Kirloskar Motor, Mahindra & Mahindra, Hyundai, Ather Energy, , Bajaj Auto, TVS Motor and Hero MotoCorp did not respond to requests for comment.
Air pollution
According to the draft policy, emissions from petrol, diesel and compressed natural gas (CNG) vehicles are key contributors to air pollution in the national capital in winter. The government has, therefore, proposed incentives for EV buyers who scrap older vehicles, especially cars. It also plans electrification mandates for two-wheelers, three-wheelers, school buses and government vehicles.
Experts said electrification can be a panacea for Delhi’s , which can worsen to the severe category in the October-December period. New Delhi was the most polluted capital city globally, according to the World Air Quality Report 2025 released by Swiss air quality technology company IQAir.
“Incremental improvements in internal combustion engine vehicles, including petrol hybrids often branded as strong hybrids, are insufficient as their benefits are quickly offset by the rapid growth in vehicle numbers,” said Amit Bhatt, India managing director of the International Council on Clean Transportation, a global think tank. “To achieve meaningful and sustained reductions in urban air pollution, policy must prioritize a transition to zero tailpipe emission vehicles.”
Other experts said a multi-powertrain strategy across vehicle types and use-cases is essential to meet the challenges of transport sector carbon emissions and overreliance on one particular fuel type.
“These challenges could be in the form of fuel security for petroleum products, raw material security e.g. battery raw materials, charging infrastructure, which is not just based on the number of charging points but also the readiness of the electrical infrastructure at local levels to take up the additional loads,” said Ashim Sharma, senior partner and group head at Nomura Research Institute (NRI) Consulting and Solutions.
A 2026 Deloitte study showed that hybrids were preferred over EVs as the next vehicle of consumers. Interest in hybrids continues to strengthen as consumers balance affordability, charging access and everyday practicality, the study said.
Fossil fuel models
The Global Automobile Consumer Study 2026 showed that while 50% of consumers preferred fossil fuel vehicles as their next purchase (down from 54% last year), 25% preferred strong hybrids (up from 21% last year), 10% preferred plug-in hybrids (down from 12% last year) and 10% preferred pure EVs (up from 8% last year).
The draft Delhi EV Policy calls for electrification of two-wheelers (no registration of fossil fuel models starting April 2028) and three-wheelers (no registration of fossil fuel models starting January 2027). The proposal includes a 10% electrification mandate for school buses in the first year, 20% in the second and 30% by the end of FY30.
The Delhi government proposes that all government vehicles procured after the policy’s notification will be fully electric, including intra-state buses and new N1 category e-trucks (mini-trucks and delivery vans).
Purchase subsidies are proposed for electric two-wheelers, three-wheelers and small trucks (N1 category) that are aligned with the Centre’s ₹10,900-crore PM E-Drive scheme. However, the Centre’s flagship EV subsidy scheme does not cover N1 category trucks, and its local value-addition criteria have not been notified.
“Electrification, particularly of high-usage segments such as two-wheelers, three-wheelers and commercial fleets, is a strong and practical starting point,” Bhatt said.
EV car sales were higher than hybrid car sales in India in 2025, according to the government’s Vahan portal – 3.92% of total cars sold were EVs while only 2.35% were strong hybrids and plug-in hybrids. In 2024, 2.47% of all cars were EVs and 1.42% were strong hybrids and plug-in hybrids, Vahan data and Mint’s calculations showed.
Hybrid vehicles run on both fossil fuels and batteries, plug-in hybrids are more reliant on electricity, while strong hybrids are more reliant on batteries.
The Centre has maintained a technology-agnostic stance on clean mobility. Minister of heavy industries H.D. Kumaraswamy told Mint in an email interview in June that the government will support all clean mobility technologies including hybrids, EVs, CNG and biofuels.
India’s EV market, dominated by two-wheelers, was valued at $54.41 billion in 2025, and the hybrid vehicle market at about $530 million, according to market research company Mordor Intelligence. India’s automobile market, the world’s third largest by sales, was valued at $137.06 billion.