New EV policy: Split opinion within GoM over incentives for hybrid vehicles?

New Delhi: Varying views within Delhi govt’s Group of Ministers (GoM) over whether strong hybrid vehicles should be eligible for incentives has emerged as a key sticking point in the finalisation of EV Policy 2.0, according to sources.The sources indicate that while some members see strong hybrids as a useful transition technology towards cleaner mobility, others favour directing incentives exclusively towards battery-electric vehicles that produce zero tailpipe emissions.The debate centres on a proposal in the new draft policy to offer a 50% waiver on road tax and registration fees for strong hybrid vehicles priced up to Rs 30 lakh.The current Delhi EV Policy is set to expire on June 30, 2026, and govt is expected to transition immediately to EV Policy 2.0, which will remain in force until 2030.

The new policy is awaiting Cabinet approval.Hybrid vehicles have emerged as Delhi’s second-largest powertrain category after petrol. Official registration data shows hybrids accounted for nearly 11% of vehicle registrations till June 12 this year, marginally ahead of EVs at 10.3% and well above diesel vehicles at 5%.Hybrid vehicle adoption has grown steadily over the past five years. Market share increased from 4.5% in 2021 to nearly 11% in 2026, while remaining consistently within the 7.3%-12.3% range since 2022.

EVs have also witnessed significant growth, rising from 1.1% of registrations in 2021 to over 10% this year.Experts backing an EV-only incentive framework argue Delhi should now focus entirely on zero-emission technologies. Amit Bhatt, International Council on Clean Transportation’s managing director for India, said, “During FAME I, govt provided incentives for hybrid vehicles, which were withdrawn under FAME II.

Five-six years ago, supporting hybrids as a transitional technology made sense, but today the priority should be a complete shift to zero-emission mobility.

”“In India, most petrol hybrids sold are strong hybrids. They are not EVs but rather more efficient internal combustion engine (ICE) vehicles. Similarly, ICCT’s research in Europe has shown plug-in hybrids are often not charged as frequently as anticipated, meaning they operate much like conventional ICE vehicles in real-world conditions,” he added.Bhatt said providing financial incentives for hybrids today could reduce the urgency of transitioning to fully electric mobility. “Public funds would be better directed toward accelerating battery innovation, expanding charging infrastructure, and supporting other technologies that are essential for achieving India’s long-term sustainable mobility goals.”Explain the reason for hybrid subsidy in the draft policy, a senior govt official said strong hybrid vehicles can act as an effective transitional technology for consumers hesitant about fully electric cars due to concerns over driving range and higher purchase costs.“They provide a balanced alternative as charging infrastructure continues to mature,” he said, adding, “By improving fuel efficiency and reducing dependence on conventional fuels, hybrids can deliver meaningful reductions in fuel consumption and vehicular emissions compared to traditional ICE-powered vehicles.”Also, since hybrids combine an electric motor with a conventional engine, they are not heavily reliant on public charging networks. “This makes them a viable option in areas where EV charging infrastructure is limited,” he said.