India’s capital has approved a new electric vehicle policy aimed at accelerating the transition away from internal combustion engines, combining financial incentives with phased registration restrictions to reduce air pollution.
The Delhi EV Policy 2.0, approved by the Delhi Cabinet, will take effect on July 1, 2026, and remain in force until March 31, 2030. The program includes planned investment of 15,000 crore rupees to support electric mobility and related infrastructure.
Incentives and Registration Changes
Under the new policy, buyers of battery-electric cars priced at up to 30 lakh rupees will receive a full exemption from vehicle tax and registration fees. Unlike the previous policy, however, the exemption will apply only to eligible vehicles within the specified price range.
The policy also introduces a phased transition to zero-emission vehicle registrations across several transport categories.
Beginning Jan. 1, 2027, only battery-electric auto-rickshaws and N1-category commercial trucks will be eligible for new registration. The same requirement will be extended to two-wheelers from April 1, 2028.
To encourage adoption, the government will provide purchase incentives of up to 30,000 rupees for electric two-wheelers, 50,000 rupees for electric three-wheelers and 100,000 rupees for electric N1 commercial vehicles. The incentive amounts will gradually decline over time to encourage earlier adoption.
Plug-in hybrid vehicles are not eligible for incentives under the policy.
Scrappage Program and Charging Network
The policy also introduces a scrappage incentive for the first 100,000 eligible applicants.
Owners who scrap older vehicles and purchase a qualifying electric vehicle priced below 30 lakh rupees will be eligible for incentives ranging from 5,000 to 100,000 rupees, depending on the type of vehicle purchased.
Approved incentive payments will be transferred directly to recipients through the government’s direct benefit transfer system.
Alongside financial incentives, Delhi plans to install approximately 32,000 public charging stations across the city. Local authorities have already allocated land to support the charging network’s expansion.
Focus on Air Quality
According to local media reports, the policy aims for electric vehicles to account for 95% of all new vehicle registrations in Delhi as early as next year.
The initiative builds on earlier measures introduced to curb vehicle emissions. Since the spring of 2025, fuel stations in Delhi have stopped supplying petrol and diesel to vehicles that exceed the city’s age limits, reinforcing existing restrictions on older petrol and diesel-powered vehicles.
The new policy represents one of India’s most comprehensive efforts to accelerate vehicle electrification while reducing transport-related emissions and improving urban air quality.
Source: fortuneindia.com, indiatoday.in, ndtv.com, autocarindia.com
