Carmakers urge Delhi to drop hybrid tax breaks and add 150,000 rupee BEV subsidies

Leading Indian passenger vehicle manufacturers have asked Delhi's government to introduce purchase incentives of 150,000 rupees per electric car priced below 1.5 million rupees, on top of existing scrappage benefits, and to cancel proposed tax breaks for strong hybrid vehicles. The draft Delhi EV policy, which includes bans on internal combustion two wheeler registrations from 2028 and three wheelers from 2025, currently offers subsidies for electric two and three wheelers but excludes electric cars while proposing tax incentives for hybrids. At least one major carmaker with an expanding battery electric portfolio has called for the hybrid incentives to be scrapped entirely.

Why it matters: The industry push to redirect policy support from hybrids to affordable battery electric cars could reshape Delhi's procurement landscape and accelerate fleet electrification if the government adopts the 150,000 rupee subsidy, making sub 1.5 million rupee BEVs more competitive for taxi and ride hailing operators. Removing hybrid incentives would also clarify the business case for charge point operators planning infrastructure rollout in the capital.