To make Delhi pollution free, the Delhi government has slashed down value-added tax on hybrid cars, battery-operated vehicles and e-rickshaws from 12.5% to 5%. The VAT reduction on electric and hybrid vehicles was announced in the budget session of 2016-2017, which has been welcomed by the SIAM society.

Hopefully, this reduction in VAT on hybrid and electric vehicles would see good number of consumers making a shift from petrol/diesel vehicles. This reduction may also It also expects the move to encourage more hybrid-vehicle manufacturers to enter the Indian market.

Currently, the vehicles that come under hybrid and electric category are like- Toyota Prius, Toyota Camry, Mahindra Reva e2o, and BMW i8.