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Delhi's Revised EV Policy Considers Limiting Hybrid Vehicle Tax Benefits

TL;DR

Delhi's EV Policy 2026-2030 is under review, with considerations to limit road tax exemptions for strong hybrid vehicles to a 2+1 year period, while also implementing registration bans for non-electric three-wheelers and two-wheelers from 2027 and 2028, respectively.

The Delhi government is contemplating revisions to its proposed Electric Vehicle (EV) Policy 2026-2030, particularly concerning the road tax exemptions offered to strong hybrid vehicles. Initially, the draft policy suggested a 50% road tax exemption for strong hybrid cars priced up to Rs 30 lakh (ex-showroom) until the policy's expiry. However, discussions are underway to potentially limit this benefit to a 2+1 year period.

While pure electric vehicles priced up to Rs 30 lakh are proposed to receive a 100% road tax exemption, the deliberations around strong hybrids reflect an effort to balance incentives and gauge consumer adoption. The policy also outlines significant mandates, including an absolute registration ban on non-electric three-wheelers from January 1, 2027, and two-wheelers from April 1, 2028, signaling a decisive shift towards electric mobility.

Concerns have been raised regarding the structural capacity to deliver on these ambitious mandates, particularly for segments like gig-economy workers who rely on two-wheelers. Issues such as charging infrastructure adequacy, financing structures, and inter-state coordination are highlighted as crucial for the policy's effective implementation.

Electric-green-mobilityMarket-insights-analysisPolicy-regulations

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