Buying a Hybrid Car in Delhi? New Policy Change Could Impact Your Savings

Delhi may limit the 50% road tax exemption for strong hybrid cars under EV Policy 2.0 to two years, with a possible one-year extension.

By Indrani Priyadarshini

on June 3, 2026

The Delhi Government is considering changes to its proposed road tax exemption for strong hybrid vehicles priced up to Rs 30 lakh (ex-showroom). Instead of offering the benefit for the entire EV Policy period, the government may limit it to two years after the policy is launched. Officials said the exemption could be extended by one more year based on its impact and customer response.

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Strong Hybrid Buyers May Need to Act Early

If the proposal is approved, buyers may have to purchase strong hybrid vehicles within the incentive period to get the 50% road tax waiver. Those buying later could face higher on-road prices if the benefit is withdrawn.

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What Are Strong Hybrid Vehicles?

Strong hybrid vehicles use both a petrol engine and an electric motor with a battery. These cars can run on the engine, the electric motor, or both together, helping improve fuel efficiency.

EV Policy 2.0 Under Review

The Delhi Government released the draft EV Policy 2.0 in April and invited suggestions from industry stakeholders and the public. Under the draft policy, electric vehicles priced up to Rs 30 lakh (ex-showroom) are eligible for a 100% road tax exemption. Strong hybrid vehicles in the same price range were proposed to receive a 50% exemption. Officials said discussions on the policy are still ongoing, and the proposed 2+1-year incentive period for strong hybrid vehicles is currently under consideration.

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