EV Makers Push Back As Delhi Draft Proposes Equal Incentives For Hybrids: Report

India’s top electric vehicle manufacturers, Tata Motors, Mahindra & Mahindra, and Hyundai Motor India, have raised strong objections to the Delhi government's draft policy that proposes equal incentives for hybrid and electric vehicles, according to a Mint report citing sources familiar with the matter.

A crucial meeting on the issue is scheduled for 30 May at Niti Aayog, where policymakers will deliberate whether hybrid vehicles should be incentivized on par with battery-electric vehicles (BEVs), the report added.

The Delhi government's draft policy, circulated to automakers on 22 April, proposes waiving road tax and registration fees for both EVs and hybrids. Currently, only EVs receive such benefits. The draft has drawn criticism from pure EV makers, who argue that hybrid-powered vehicles by both internal combustion engines and electric motors should not be treated the same as zero-emission EVs, the report added.

Tensions escalated after the Commission for Air Quality Management (CAQM) issued an advisory on 2 May recommending that government departments consider clean-fuel vehicles, including hybrids, EVs, and CNG, for procurement. The advisory noted that Strong Hybrid Electric Vehicles (SHEVs) offer “substantial” improvements in fuel efficiency and emissions reduction, it added.

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Industry Opposition Mounts

EV manufacturers have raised their concerns with the Ministry of Heavy Industries (MHI) and Niti Aayog. On 14 May, executives from leading EV companies met Union Heavy Industries Minister H.D. Kumaraswamy to voice their objections. Following the meeting, several automakers sent letters opposing Delhi’s stance, insiders said.

“Hybrid is an old technology. While customers can choose, the policy should not undermine investments in pure EVs,” one source said in the report.

Tata Motors MD Shailesh Chandra stressed that government incentives should target technologies that support long-term sustainability and require funding to scale. Incentives are most effective when they help emerging technologies reach scale, particularly those aligned with net-zero goals, such as EVs, he said.

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