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Delhi’s proposed hybrid car tax relief could slash ownership costs by up to Rs 1.5 lakh

Delhi’s Draft EV Policy 2026-2030 proposes significant tax concessions for strong hybrid vehicles, potentially reducing the on-road cost of several popular models.
Published: Jun 03, 2026 18:22 ISTUpdated: Jun 30, 2026 04:31 IST3 MIN READ
Delhi’s proposed hybrid car tax relief could slash ownership costs by up to Rs 1.5 lakh

Delhi may soon offer substantial financial relief to buyers of strong hybrid vehicles as part of its proposed EV Policy 2026-2030. The draft policy recommends a 50 per cent exemption on road tax and registration fees for strong hybrid cars priced up to Rs 30 lakh, a move that could significantly lower the cost of ownership for several popular models.

Although the proposal is yet to receive final approval, it signals the government’s intent to encourage cleaner mobility options while continuing to push electric vehicle adoption across the capital.

Proposed incentives could make hybrids more affordable

According to NDTV, under the current taxation structure, buyers in Delhi pay a 10 per cent road tax on cars priced above Rs 10 lakh, with no special concessions available for hybrid vehicles. The draft policy seeks to change that by reducing both road tax and registration charges by half for eligible strong hybrids.

The proposed benefit would remain available until March 31, 2030. If implemented, it would narrow the price gap between conventional petrol vehicles and hybrids, making fuel-efficient technology more accessible to a wider section of buyers.

However, electric vehicles would continue to receive greater benefits under the draft framework, with a full exemption on road tax and registration fees proposed for EVs priced below Rs 30 lakh.

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Popular hybrid models stand to gain the most

According to NDTV, several strong hybrid models currently available in India fall within the proposed eligibility bracket and could benefit substantially from the tax relief.

Buyers of the Maruti Suzuki Grand Vitara and Toyota Hyryder could save close to Rs 1 lakh, while purchasers of the Toyota Innova Hycross and Maruti Suzuki Invicto may see savings of up to Rs 1.45 lakh. The Honda City e: HEV is also expected to qualify for benefits worth around Rs 1 lakh.

Upcoming hybrid offerings are likely to benefit as well. Industry expectations suggest that the Renault Duster Hybrid, anticipated later this year, could fall within the qualifying price range if the policy comes into force around its launch period.

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Buyers may want to wait for official approval

According to NDTV, despite the excitement surrounding the proposal, industry experts caution that the policy remains at the draft stage. No formal notification has been issued, and the final structure could still undergo revisions before implementation.

For prospective hybrid car buyers in Delhi, the decision may come down to timing. Those planning a purchase in the near future could benefit from waiting until the government officially announces the policy. With potential savings ranging from Rs 80,000 to nearly Rs 1.5 lakh, the proposed incentives could substantially alter the value proposition of strong hybrid vehicles in the capital.

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