Delhi's move for hybrid sops rattles EV makers

Cos which have invested heavily in battery tech fear that other states may follow

- Ayaan Kartik & Nehal Chaliawala

A draft policy floated by the Delhi government proposing to grant hybrid cars the same benefits as fully electric cars has generated waves of concern among homegrown carmakers. Most such automakers have committed vast sums to battery electric vehicle (BEV) technology, and their development roadmap does not include hybrids.

A draft of the policy—Delhi Electric Vehicles Policy 2.0—shared with automakers for their comments on Tuesday mentions that the National Capital Territory of Delhi will waive road tax and registration fees on electric cars priced up to 20 lakh ex-showroom.

The waiver has also been extended to strong hybrid EVs (SHEVs) and plug-in hybrid EVs (PHEVs) with a similar price cap, "acknowledging their contribution to reducing vehicular emissions and supporting cleaner mobility," the draft policy read. This would translate to savings of about ₹2 lakh on a car with an ex-factory price of ₹20 lakh.

The waiver of these charges is expected to encourage adoption of hybrid cars among consumers, as per the policy draft, a copy of which Mint has seen.

Uttar Pradesh was the first state to waive these charges for hybrid vehicles in July last year. The move was strongly opposed by several automakers then.