EV Policy 2.0: No Registration & Road Tax For Hybrid Cars?

In a significant stride towards promoting eco-friendly transportation, the Delhi government has proposed an exemption of registration and road tax for hybrid vehicles priced under Rs 20 lakh. This move is part of the drafted EV Policy 2.0, which aims to extend the incentives currently available to battery electric vehicles (BEVs) to include hybrids as well. This initiative reflects a growing recognition of the critical role hybrids can play in the transition towards cleaner mobility solutions.

Hybrid vehicles are categorized based on their operational capabilities, with strong hybrids, plug-in hybrids, and mild hybrids being the primary types. Strong hybrids operate with a combination of a conventional engine and a small lithium-ion battery, offering a limited electric-only driving range.

Grand Vitara

Once this range is depleted, the vehicle's engine kicks in to power the car and recharge the battery. On the other hand, plug-in hybrids come equipped with larger batteries, allowing for extended electric-only travel distances. They can be recharged through conventional engines or by plugging into an external electric vehicle (EV) charging station. Unlike these two, mild hybrids rely on a small electric motor to assist the engine during acceleration at low speeds and cannot run solely on electric power.

The proposed policy change, however, has sparked a debate within the automotive industry. Companies that have heavily invested in the development of all-electric vehicles, such as Tata, Mahindra, and Hyundai, have voiced their concerns regarding the inclusion of hybrid cars in the EV benefits scheme. They fear that equating the incentives for EVs and hybrids could potentially dilute the focus on pure electric vehicles, especially since these manufacturers currently do not offer strong or plug-in hybrid models in the Indian market. Nonetheless, Hyundai does market hybrid variants of some models in international arenas.

Despite the contention, the Delhi government's initiative has been met with mixed reactions. The draft of EV Policy 2.0, which was recently shared with both domestic and international carmakers for feedback, outlines the exemption of road tax and registration fees for EVs and hybrid cars within the specified price range in the Delhi-NCR area. Notably, the policy explicitly mentions that the exemptions are intended for strong and plug-in hybrids, excluding mild hybrids from this benefit.

Hyryder

Furthermore, the move by the Delhi government could set a precedent for other states, with Uttar Pradesh already having waived such charges for hybrid vehicles as of July 2024, a decision which had previously drawn criticism from various manufacturers. This regional policy alignment could potentially accelerate the adoption of hybrid vehicles across India, thereby contributing to the country's environmental sustainability goals.

Among the automakers, Maruti Suzuki, Honda, and Toyota are currently leading the hybrid market in India, offering models such as the Grand Vitara, Urban Cruiser Hyryder, City e:HEV, Innova Hycross, and Invicto. While these companies have yet to introduce all-electric models in the Indian market, Maruti Suzuki is poised to launch its first BEV - the eVitara - later this year, with Toyota planning to introduce a model based on the Urban Cruiser EV concept soon after.

DriveSpark Thinks

It's crucial to note that the EV Policy 2.0 draft is still under review. The final decision regarding the inclusion of hybrid cars in the EV benefits scheme will be made after carefully considering the feedback received from automobile manufacturers. This deliberative approach underscores the government's commitment to fostering a sustainable and inclusive transition to electric mobility, balancing the interests of various stakeholders in the automotive industry.

Article Published On: Friday, April 25, 2025, 10:56 [IST]
Read more on: #auto news #india
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