The draft Delhi Electric Vehicle Policy 2026 is now making big headlines for what it promises. In addition to heavily incentivising electric vehicles (two, three and four wheelers), it also proposes to make strong hybrids cheaper to own. The draft policy offers 50% exemption on road tax and registration fees for strong hybrid cars that qualify. Models like the Toyota Innova Hycross hybrid would get cheaper by up to Rs 1.45 lakh. This move could reshape Delhi’s electrification roadmap.
According to the draft policy, strong hybrid cars priced under Rs 30 lakh will qualify for the waiver. Some carmakers had previously sought incentives and tax waivers on hybrids to boost their adoption. The new move will make them happy. According to the draft policy, qualifying strong hybrid cars will enjoy a 50% exemption on road tax and registration fees. This will bring down the on-road prices significantly. The new policy will stay valid till March 31, 2030.
Currently in India, most volume-based hybrids are priced in the sub-30 lakh range, and would thus benefit from these exemptions. The highest-selling hybrid models here are the Toyota Hyryder, Innova Hycross hybrid, Maruti Grand Vitara Hybrid, Victoria hybrid and Honda City e:HEV. Most of these are priced under 30 lakh rupees.
The Hycross has several qualifying variants, and is also the one that sees the biggest reduction in on-road prices. The VX(O) 8STR Hybrid variant, for example, has an ex-showroom price of Rs 28.82 lakh. Previously, the registration fees and road tax on this in Delhi used to be Rs 2.88 lakh.
Under the new policy, this will come down to Rs 1.44 lakh. Previously, the on-road price of this variant was Rs 33.39 lakh. It will now come down to 31.94 lakh- a difference of Rs 1.45 lakh.
Let’s now take the case of the Hyryder hybrid. The range-topping V HYBRID variant has an ex-showroom price of Rs 19.99 lakh. Previously, Rs 1.15 lakh had to be paid in road tax and registration fees.
Under the revised policy, this reduces to roughly Rs 57,500. The previous on-road price in Delhi was Rs 22.81 lakh. This gets reduced to Rs 22.2 lakh- down by approximately Rs 61,000.
In a way, the new policy makes sure that incentives and benefits are no longer limited exclusively to EVs. It is a big win for automakers who have invested heavily in hybrid technology. Maruti Suzuki, Toyota Kirloskar Motor and Honda Cars India are three good examples. Under the revised policy (if implemented), we will most likely see a significant increase in adoption.
The proposal has not gone down well with India’ EV makers. Tata Motors and Mahindra & Mahindra had previously opposed the move, saying that it could possibly dilute the momentum of EV adoption here. These companies, as we know, have invested heavily in EV battery, powertrains, platforms, infrastructure and associated technologies.
The draft policy, however, makes sure that EVs remain properly incentivised. Electric vehicles priced up to Rs 30 lakh will continue to qualify for 100% exemption on road tax in Delhi. For electric two-wheelers, the policy introduces a cap, Incentives of Rs 10,000 can be had per kWh in the first year. For three-wheelers, first-year incentives go up to Rs 50,000. Rs 100,000 can be availed on electric goods vehicles.