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The Commission for Air Quality Management (CAQM) in the National Capital Region and Adjoining Areas in a 3 June advisory directed the state governments of Delhi, Haryana, Uttar Pradesh and Rajasthan to allow only the registration of electric or compressed natural gas (CNG)-powered three-wheelers for commercial fleet operators in the NCR.
Moreover, for four-wheeler passenger and goods vehicles and for two-wheelers, it said commercial fleets should induct no conventional vehicle running only on petrol or diesel from January 2026. This is applicable to vehicle aggregators, delivery service providers, and e-commerce entities.
While it did not define ‘clean vehicles’ this time, CAQM, in a 2 May advisory, defined them as battery electric vehicles, hybrid vehicles, CNG vehicles, and those running on flex fuel. In that advisory, the CAQM had urged all state and Union government departments in the NCR to procure only clean vehicles.
The minutes of a CAQM meeting on 2 June show that the commission accords highest priority to zero-emission vehicles like EVs, which have no tailpipe emissions. However, considering that the adoption of EVs was low in the market, other technologies like hybrid vehicles, CNG, and flex-fuel, which are relatively cleaner than conventional petrol and diesel vehicles, can also be considered during the transition phase, CAQM members noted in their meeting.
CAQM’s stand comes much to the dismay of several EV makers, who have been lobbying to not give hybrid vehicles—which use both a combustion engine and an electric motor for propulsion—policy status on par with battery electric vehicles (BEVs). Doing so could risk their investments in developing electric cars, they said.
Meanwhile, a rival lobby has been promoting the adoption of hybrid cars as these provide a more practical alternative to conventional combustion engine vehicles.
The two lobby groups are now reading between the lines of policy documents.
The purity debate
Following CAQM’s 2 May advisory, Tata Motors Ltd, Hyundai Motor India Ltd, and Mahindra and Mahindra Ltd rushed to the ministry of heavy industries and Niti Aayog against the mention of hybrid vehicles as a clean technology along with EVs.
The air quality monitoring body believes hybrid vehicles can help in urgently addressing the pollution crisis in Delhi.
“Strong Hybrid Electric Vehicles (SHEV) offer substantial improvements in fuel efficiency and emission reduction as compared to conventional diesel/petrol vehicles,” CAQM said in its 2 May advisory urging state and Union government departments in the Delhi-National Capital Region to procure only clean vehicles.
The NCR became a point of contention in the pure electric vehicle versus hybrid vehicle debate when the Delhi government, on 22 April, issued a draft policy proposing to grant hybrid cars the same benefits as fully electric cars.
The Delhi Electric Vehicles Policy 2.0 proposed waiving road tax and registration fees on battery electric cars, strong hybrid EVs, and plug-in hybrid EVs (PHEVs) priced up to ₹20 lakh ex-showroom. This would translate to savings of about ₹2 lakh on a car with an ex-factory price of ₹20 lakh. CAQM released its draft guidelines 10 days later.
“Inclusion of hybrid vehicles in incentives and putting them on the same pedestal as electric vehicles will discourage investments into EVs,” an executive at one of the top domestic automakers said, declining to be identified.
Move to hybrids
Currently, only Maruti Suzuki India Ltd, the country’s largest carmaker, has a portfolio comprising ICE, hybrid, and pure electric vehicles.
Last month, Hyundai Motor India, the country’s second-largest carmaker, said it planned to introduce hybrid electric vehicles in the country, without specifying a timeline. Honda Motor Co. Ltd said last month that it will focus on hybrid cars and slashed its EV target, citing a slowdown in the adoption of electric cars.
Analysts at HSBC Global Research, however, said hybrid and electric vehicles complement each other and would ultimately help grow the EV sector.
“The perception that promoting SHEVs will hinder EV adoption is misplaced, in our view. This is not a zero-sum game, but rather an incremental opportunity where incentivising SHEVs contributes to the broader development of the clean mobility ecosystem, benefiting BEVs and advancing overall market growth,” HSBC Global Research analysts Yogesh Aggarwal, Vipul Agrawal, and Vishal Goel wrote in a note dated 20 May.
However, other experts argue that the government should incentivise only pure electric vehicles if it wants to promote zero-emission vehicles.
“The objective of the EV policy is to cut down emissions of vehicles and also contribute to improving the air quality,” said Sharif Qamar, associate director of transport and urban governance at The Energy and Resources Institute (Teri), a non-profit think tank.
“When it comes to the emission reduction objective, currently, only zero-tailpipe emission vehicles need to be prioritised. Incentives should be crafted to encourage players to move towards zero-emission vehicles.”
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