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What is the story about?
Shares of electric vehicle (EV) and auto manufacturers are in focus on Tuesday, June 30, after the Delhi Cabinet approved the Electric Vehicle Policy 2026-2030, which aims to accelerate EV adoption in the national capital.
The policy, which is expected to come into effect from July 1, retains the key proposals unveiled in the draft released in April.
The Delhi government has proposed an investment of ₹15,000 crore between FY27 and FY30, with ₹7,000 crore earmarked for purchase incentives and another ₹8,000 crore allocated towards charging infrastructure and tax concessions.
Under the new policy, the government aims to ensure that 30% of Delhi's vehicle fleet is electrified by March 2030.
The policy also lays down a phased transition towards electric mobility. From January 1, 2027, only electric three-wheelers will be eligible for new registrations. Beginning April 1, 2028, registrations of new petrol and CNG-powered two-wheelers will no longer be permitted.
To encourage EV adoption, the government has proposed incentives of up to ₹30,000 for electric two-wheelers and up to ₹50,000 for electric three-wheelers. Private electric cars priced up to ₹30 lakh will continue to enjoy exemptions from road tax and registration charges.
Brokerage firm Nomura said the policy reinforces Delhi's commitment to EV adoption and sees Mahindra & Mahindra, Tata Motors' passenger vehicle business, Ather Energy and Sona BLW Precision Forgings as key beneficiaries.
Citi, however, said it is awaiting greater clarity on incentives for strong hybrid vehicles. The brokerage also cautioned that implementation could remain challenging given Delhi's porous borders with Haryana and Uttar Pradesh.
According to Citi, Delhi accounted for around 5% of India's passenger vehicle sales, 3% of two-wheeler sales and 2% of three-wheeler sales in FY26.
The policy is expected to be particularly positive for electric three-wheeler manufacturers such as Bajaj Auto and Mahindra Last Mile Mobility, as well as electric two-wheeler makers including TVS Motor, Ola Electric and Ather Energy.
Passenger EV manufacturers such as Tata Motors and Mahindra & Mahindra are also likely to benefit, while the absence of incentives for hybrid vehicles could be a negative for Maruti Suzuki.
The policy, which is expected to come into effect from July 1, retains the key proposals unveiled in the draft released in April.
The Delhi government has proposed an investment of ₹15,000 crore between FY27 and FY30, with ₹7,000 crore earmarked for purchase incentives and another ₹8,000 crore allocated towards charging infrastructure and tax concessions.
Under the new policy, the government aims to ensure that 30% of Delhi's vehicle fleet is electrified by March 2030.
The policy also lays down a phased transition towards electric mobility. From January 1, 2027, only electric three-wheelers will be eligible for new registrations. Beginning April 1, 2028, registrations of new petrol and CNG-powered two-wheelers will no longer be permitted.
To encourage EV adoption, the government has proposed incentives of up to ₹30,000 for electric two-wheelers and up to ₹50,000 for electric three-wheelers. Private electric cars priced up to ₹30 lakh will continue to enjoy exemptions from road tax and registration charges.
Brokerage firm Nomura said the policy reinforces Delhi's commitment to EV adoption and sees Mahindra & Mahindra, Tata Motors' passenger vehicle business, Ather Energy and Sona BLW Precision Forgings as key beneficiaries.
Citi, however, said it is awaiting greater clarity on incentives for strong hybrid vehicles. The brokerage also cautioned that implementation could remain challenging given Delhi's porous borders with Haryana and Uttar Pradesh.
According to Citi, Delhi accounted for around 5% of India's passenger vehicle sales, 3% of two-wheeler sales and 2% of three-wheeler sales in FY26.
The policy is expected to be particularly positive for electric three-wheeler manufacturers such as Bajaj Auto and Mahindra Last Mile Mobility, as well as electric two-wheeler makers including TVS Motor, Ola Electric and Ather Energy.
Passenger EV manufacturers such as Tata Motors and Mahindra & Mahindra are also likely to benefit, while the absence of incentives for hybrid vehicles could be a negative for Maruti Suzuki.
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