Hybrids vs EVs: New advisory for Delhi fleet operators adds fresh fuel to fire
The Commission for Air Quality Management in the National Capital Region and Adjoining Areas (CAQM) in a 3 June advisory directed commercial fleet operators to not induct conventional petrol or diesel vehicles and prefer 'clean' automobiles instead, much to the chagrin of the electric vehicle lobby for not clearly defining clean vehicles.
'No conventional ICE (internal combustion engine) vehicles running purely on diesel or petrol shall be further inducted in the existing fleet of 4-Wheeler LCVs (light commercial vehicles), 4-Wheeler LGVs (light goods vehicles; N1 category up to 3 5 Ton) and 2-Wheelers with effect from 01.01.2026," CAQM said in its advisory 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 these as battery electric vehicles, hybrid vehicles, and those running on compressed natural gas (CNG).
The ambiguity in the latest advisory has left the door open for the promotion of hybrid vehicles in the national capital, which struggles with among the highest pollution levels in the country.
EV makers led by domestic car companies have been lobbying to not give hybrid vehicles—which use both a combustion engine and an electric motor for propulsion—a policy status on par with battery electric vehicles (BEVs).
Doing so could risk their investments in developing electric cars, they said.
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, 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 central government departments in the Delhi-National Capital Region to procure only clean vehicles.
The national capital region 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 (BEVs), strong hybrid EVs (SHEVs), 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 it 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.
A 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 Ltd, 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 vehicles and electric vehicles complement each other, and would ultimately help in the growth of 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 incentivizing 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.
But other experts argue that only pure electric vehicles should be incentivized if the government 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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