Mumbai/New Delhi, Oct. 20 -- The battle between electric and hybrid vehicles in India has taken a fresh turn, with Uttar Pradesh-the largest state offering incentives for hybrid cars-deciding to withdraw all financial benefits for hybrids and back only pure electric vehicles (EVs).

The move marks a significant policy win for homegrown EV makers Tata Motors and Mahindra & Mahindra, and a setback for Japanese hybrid car manufacturers Toyota, Honda Cars, and Maruti Suzuki.

UP's high-level empowered electric vehicle committee (HLEEVC), led by state chief secretary Shashi Prakash Goyal, took this decision at a meeting on 10 October.

"It was observed that incentives should be strategically implemented towards encouraging the indigenous manuf...