In the budget session of 2016-2017, Delhi government has given a major importance to electric and hybrid vehicles, which has been welcomed by the SIAM.

Delhi’s finance minister, Manish Sisodia, said that Delhi government will not charge any road tax on registration of electric vehicles, to promote the usage of electric vehicles. He also said that, VAT rate on all electric vehicles has been proposed to be reduced from 12.5 per cent to 5 percent.