 "Rekha Gupta, Delhi CM")
As the national capital continues to choke under severe pollution, Delhi Chief Minister Rekha Gupta and Transport Minister Pankaj Kumar Singh on Friday separately met six automakers to discuss the draft Electric Vehicle (EV) Policy 2.0, government officials and industry sources told Business Standard.
The discussions centred around a few broad issues — whether strong hybrid cars should qualify for incentives under the new policy, bottlenecks in quickly expanding charging infrastructure and the impact of large-scale EV adoption on the power grid.
There were also concerns around end-of-life battery disposal, the design of demand-side incentives, including scrappage-linked benefits and purchase subsidies, and possible support measures for fleet operators to accelerate transition to electric mobility.
The six automakers that attended the two meetings were Maruti Suzuki India (MSIL), Honda Cars India, Toyota Kirloskar Motor (TKM), Tata Passenger Electric Mobility (TPEM), Mahindra & Mahindra (M&M) and JSW MG Motor.
Of these, MSIL, Honda and TKM do not currently sell electric cars in India, though MSIL plans to launch its first electric model in the first half of this year.
According to Federation of Automobile Dealers Associations (Fada) data, TPEM, JSW MG Motor, M&M, Kia, BYD and Hyundai were the top six electric vehicle makers by volume in October 2025. Kia, BYD and Hyundai, however, were not invited to the two meetings.
On incentives for strong hybrid cars, the two meetings saw a clear divergence of views among automakers.
Companies such as Maruti Suzuki and Toyota argued that strong hybrids should be incentivised as they offer better fuel efficiency and lower emissions than conventional internal combustion engine (ICE) vehicles.
However, other manufacturers, including TPEM, M&M and JSW MG Motor, opposed the move, arguing that policy support should remain firmly focused on fully electric vehicles.
According to an official present at the meeting, the Delhi government is discussing whether to prioritise a faster shift towards electric vehicles in view of the severity of the city’s air pollution problem.
The official added that the parliamentary standing committee report tabled on December 12 was also discussed.
The report had recommended that central incentives be directed exclusively towards EVs rather than hybrid vehicles. It noted that hybrids continue to rely on fossil fuels and emit tailpipe pollutants unlike “true zero-emission vehicles.”
Charging infrastructure was another key focus, with the government seeking inputs on obstacles to scale up charging points across Delhi.
Automakers flagged access to land as the biggest constraint, particularly in areas controlled by agencies such as the New Delhi Municipal Council (NDMC), which they said has been reluctant to allocate space.
Industry representatives said that if land is made available wherever feasible, charging infrastructure could be rolled out quickly and at scale. This would significantly increase the number of public charging points in the city.
The meetings also examined whether the power distribution network could handle a sharp rise in EV adoption.
Automakers told officials that the additional load from home charging would be limited, estimated at no more than 1.4 per cent, while public fast chargers could add less than 10 per cent to the grid load.
They said these increases could be managed with better planning and coordination with power distribution companies (discoms). They cited global examples such as Beijing, where EV users are encouraged to charge during non-peak hours through lower tariffs.
Battery disposal and end-of-life management was another concern raised by the government.
Automakers pointed to the existing extended producer responsibility (EPR) norms, which mandate proper collection and recycling of battery waste. They said compliance with these guidelines should address environmental concerns.
Demand-side incentives were also discussed, particularly the need to redesign benefits for consumers scrapping older vehicles and shifting to EVs.
Officials acknowledged that since EVs are already exempt from road tax in Delhi, existing scrappage-linked incentives on road tax offer limited value, and a new mechanism may be required.
The government is also considering reintroducing purchase-time subsidies for EVs under Policy 2.0, sources said.
The discussions further covered incentives for fleet operators, including cab aggregators, with options such as interest subvention and possible toll waivers to support the transition to electric vehicles.
