The Delhi government may revise its proposed road tax exemption for strong hybrid vehicles priced up to Rs 30 lakh or below (ex-showroom), limiting the benefit to two years after the rollout of the Electric Vehicle policy. The exemption could be extended by one more year, depending on its impact and adoption.

In simple terms, buyers looking to purchase a strong hybrid may need to do so within the incentive window to avail the 50% road tax waiver; those buying later could face higher on-road prices if the benefit is withdrawn.

Strong hybrids are vehicles that combine a conventional internal combustion engine with an electric motor and battery. A strong or full hybrid vehicle can run on a petrol engine, an electric motor, or a combination of both.

The government had released the draft EV policy 2.0 in April seeking comments and suggestions from stakeholders, auto industry and public. As per the draft, a 100% road tax exemption was proposed for all electric vehicles priced up to Rs 30 lakh (ex-showroom) and a 50% exemption for strong hybrid cars priced up to Rs 30 lakh (ex-showroom) till the expiry of the policy.

The draft draws a clear line for higher-end vehicles, stating that electric cars priced above Rs 30 lakh will not be eligible for any exemption.

Explaining the reason behind the proposed revision, officials said consultations with stakeholders have been held and suggestions have been received. “Discussions on the policy are still ongoing, and a revision in the proposed 50% discount for strong hybrid vehicles priced up to Rs 30 lakh (ex-showroom), limiting it to a 2+1 year period, is being considered,” they said.

They said the focus remains on promoting two-wheelers, but the government also does not want to lose revenue to other states.

An official said, “Our main focus is on two-wheelers as they constitute approximately 67% of the total vehicle stock in Delhi, making their rapid electrification critical for achieving meaningful reductions in vehicular emissions. So, incentives and mandates are more towards two- and three-wheelers to improve air-quality level in Delhi.”

Officials said they may extend the incentives for this category of vehicle for another year, if required, after seeing the result and the number of vehicles people are buying.

On what the proposal means for buyers: Anil Chhikkara, former senior transport department official and an expert in the field, said: “It is a kind of appeasement by the government, as it is encouraging people to adopt EVs and strong hybrids. Since strong hybrids use both fuel and electric power, they can serve as a bridge for those who are reluctant to switch fully to EVs. In that sense, they can help increase the adoption of electrified vehicles.”

“This move will also allow the government to gauge the popularity of strong hybrids among consumers. Overall, it is a positive proposal. With a limited timeline (proposed) for the incentive, more people are likely to opt for such vehicles, knowing they can benefit from the tax relaxation if they make their purchase within that period,” he added.

Officials said a Model Approval Committee will be constituted under the Transport Department which will be responsible for empanelment of EV models across eligible vehicle segments for availing incentives and subsidies under the policy.

The Committee will examine and approve vehicle models based on the eligibility criteria, technical specifications, and other conditions prescribed under the operational guidelines. Only models approved and empanelled by the Committee will be eligible for purchase incentives under the policy.

“The application for purchase incentive shall be submitted within 30 days from the date of generation of the Registration Certificate (RC). The eligible subsidy amount shall be disbursed within 60 days from the date of submission of the application on the digital portal, subject to verification and fulfilment of applicable requirements,” said officials.

Further, any vehicle availing purchase incentive under the Delhi EV Policy 2026 will not be eligible for issuance of a No Objection Certificate (NoC) for transfer or re-registration in another state or city for a period of five years from the date of registration of the vehicle in Delhi.

The current EV policy, which has already been extended multiple times, will expire by June 30.

“There are few changes being made in the policy. All these proposed changes and recommendations will be put before the Council of Ministers for approval in the Cabinet; if they suggest any change and additions, it will be done. The final draft will be ready in the next 10 days… following which it will be implemented soon,” said officials.