EV makers push to keep hybrids out of benefits

Firms approach Niti Aayog, heavy industries ministry after Delhi govt move

- Ayaan Kartik & Nehal Chaliawala

India's leading electric car makers—Tata Motors Ltd, Mahindra and Mahindra Ltd, and Hyundai Motor India Ltd—are up in arms over the Delhi government's draft paper proposing equal incentives for hybrid cars and electric vehicles (EVs), according to four people aware of the matter.

A crucial meeting to discuss the issue is scheduled to be held in Niti Aayog on 30 May, the people cited above said on condition of anonymity. Whether to incentivize hybrid cars on par with EVs will be discussed at the meeting, they said.

The Delhi government has proposed road tax and registration fee waivers for both technologies, something available only to pure EVs now.

The EV makers' opposition to sharing the benefits comes at a time of growing preference for hybrids. FY25 saw the sale of 107,000 electric cars which enjoy various benefits and subsidies, against 83,000 strong hybrids, which don't.

What has riled EV makers further is a 2 May advisory by the commission for air quality management in NCR (CAQM) encouraging public departments—of both central and state governments—to buy clean fuel cars, including EVs, hybrid and CNG vehicles, among others. "Strong Hybrid Electric Vehicles (SHEV) offer substantial improvements in fuel efficiency and emission reduction as compared to conventional diesel/petrol vehicles," the advisory reads.