Tuesday, June 30, 2026
By Kamal Swami
Delhi Govt Announces New EV Policy with Incentives
With an objective to encourage the adoption of electric mobility, the government of Delhi has approved a new Electric Vehicle (EV) Policy aimed. According to the policy, the buyers of new vehicles will be offered subsidies on the purchase of a new electric vehicle, they will also receive scrappage incentives and also significant tax benefits. As per the policy, all these incentives will be introduced in phases. Under the new policy, buyers of electric two-wheelers will receive a subsidy of Rs30,000, while electric three-wheeler buyers will be eligible for an incentive of up to Rs50,000 during the first year of the scheme. These subsidies will gradually reduce in subsequent years as EV adoption gains momentum.
To encourage the replacement of older, polluting vehicles, the government has also announced attractive scrappage incentives. Owners who scrap eligible old vehicles and purchase a new electric vehicle can receive incentives of up to Rs1 lakh for electric cars, with additional benefits available for electric two-wheelers, three-wheelers, and select commercial vehicles.
The policy continues to provide 100% exemption from road tax and registration charges for eligible electric vehicles. Additionally, electric cars priced below the prescribed limit will remain eligible for these financial benefits, making EV ownership more affordable for consumers.
As part of its long-term roadmap, the Delhi government plans to gradually phase out registrations of certain fossil fuel-powered vehicles. From January 1, 2027, only electric auto-rickshaws will be newly registered in the city, while registrations of new petrol and CNG two-wheelers are proposed to end on April 1, 2028. The policy also excludes hybrid vehicles from receiving incentives, focusing exclusively on battery-electric vehicles.
The government has earmarked approximately Rs15,000 crore over the next four years to support the expansion of EV infrastructure, charging facilities, and the broader adoption of sustainable transportation. The policy is expected to strengthen Delhi's efforts to reduce vehicular emissions and improve air quality while encouraging residents to shift towards zero-emission mobility.
