Delhi EV Policy Finalised: No Tax Breaks for Hybrids, Petrol Bikes Banned from 2028

The Delhi government has finalised its Electric Vehicle (EV) Policy, dropping proposed incentives for strong hybrid cars and focusing entirely on pure electric vehicles. The policy, which takes effect from July 1, also mandates that only electric two-wheelers can be registered in the capital after March 31, 2028, effectively banning petrol scooters and motorcycles.

The decision ends a long-standing debate over whether to exempt strong hybrids from road tax. The draft policy had proposed a 50% concession on road tax and registration for strong hybrids costing up to Rs 30 lakh, to ease the transition to EVs. While backed by several mobility experts, critics argued for prioritising charging infrastructure and pure EVs.

Under the approved policy, all pure electric vehicles will receive a 100% waiver on road tax and registration charges. For four-wheelers, this applies to models priced up to Rs 30 lakh (ex-showroom). Additionally, EVs bought under the policy cannot be sold or registered in another state for three years.

Strong hybrids combine a combustion engine with a powerful electric motor and larger battery, allowing limited all-electric driving. Mild hybrids, which cannot run on electricity alone, are not covered by the policy.

Chief Minister Rekha Gupta said the policy aims to reduce air pollution and strengthen the city's transport system. The government will spend Rs 15,000 crore on incentives and charging infrastructure. Purchase incentives for electric two-wheelers are set at Rs 30,000 in the first year, Rs 20,000 in the second, and Rs 10,000 in the third. For three-wheelers, incentives are Rs 50,000, Rs 40,000, and Rs 30,000 respectively over three years. Light commercial electric trucks (N1 category) will get up to Rs 1 lakh subsidy in the first year.

Officials noted that a 2008 study attributed 33% of vehicular pollution in Delhi to commercial goods vehicles and 46% to two- and three-wheelers. The policy is now with the Lieutenant Governor for final approval.