2 weeks Ago By Pratiksha Thayil
Maruti Suzuki India Ltd. could be a key beneficiary if Delhi’s proposed road tax exemption for hybrid vehicles is implemented, according to BofA Global Research. The Delhi government’s draft EV policy proposes extending road tax waivers to strong hybrid and plug-in hybrid cars priced below Rs 20 lakh, a benefit currently available only to electric vehicles.
This move would mark a significant step towards bringing hybrids closer in cost parity with EVs, especially in the sub-Rs 20 lakh segment. Delhi currently levies a 10–12.5% road tax on cars priced above Rs 10 lakh.
A waiver on this tax could result in savings of Rs 1.70 lakh–2.20 lakh on popular hybrid models such as the Maruti Grand Vitara.
Although Delhi represents just 5% of India’s overall passenger vehicle market, it is viewed as a progressive state when it comes to green mobility, the brokerage said in its note. The state has already banned diesel vehicles older than 10 years and is aiming to completely phase out diesel powertrains over the next decade.RIL, Shriram Finance, Maruti Suzuki, L&T Finance Q4 Results Today — Earnings EstimatesA formal rollout of this policy could set an example for other states to follow, as seen previously with Uttar Pradesh.
In July 2024, UP introduced similar road tax exemptions for hybrids, helping increase hybrid adoption from 1% to 3%. The state holds a 12% share of India’s PV market.Currently, hybrid penetration stands at 4% in Delhi and 2.
3% nationally, compared to EV penetration of 6% and 3%, respectively. The limited hybrid model availability remains a challenge, said BofA.Only a handful of vehicles, including Maruti’s Grand Vitara and Toyota’s Urban Cruiser Hyryder, meet the price and technology criteria.
However, Maruti plans to expand its hybrid portfolio from calendar year 2026, with models like the Swift and Fronx hybrids in development.While state-level support is growing, central policy still favours EVs, according to the brokerage. Hybrid vehicles attract a 43% GST rate, compared to just 5% for EVs, and central government incentives are currently reserved for electric models only.
Still, with EV charging infrastructure concerns and range anxiety persisting, hybrids could serve as a practical middle ground for Indian consumers.ABB India Adopts EVs For Factory Operations And Last-Mile Deliveries In Bengaluru. Read more on Markets by NDTV Profit.
.
