Delhi’s new Electric Vehicle (EV) Policy 2.0 provides the regulatory blueprint Indian states need because it shifts the strategy from merely offering financial incentives to mandating clear, segment-specific
deadlines for a complete structural transition, say experts. Approved by the Delhi Cabinet, the ₹15,000-crore policy, which runs from July 1, 2026, to March 31, 2030, targets an aggressive 95% electric vehicle registration rate by 2027. While most states struggle with slow EV adoption due to open-ended incentive programmes, Delhi is the first to introduce clear legal mandates and structural changes.
DELHI EV POLICY EXPLAINED
All electric cars with an ex-showroom price of Rs 30 lakh or less registered in the national capital will be granted 100 per cent exemption on road tax and registration fees, as the Delhi government approved a new EV policy on Monday. Under the new policy, people buying e-two-wheelers will get a subsidy of Rs 30,000 in the first year, Rs 20,000 in the second year and Rs 10,000 in the third year.
As part of the policy, only electric autorickshaws will be registered in Delhi from January 1, 2027, while registration of new petrol and CNG two-wheelers will be phased out, with only electric two-wheelers to be registered from April 1, 2028.
Addressing a press conference, Chief Minister Rekha Gupta said that around Rs 15,000 crore will be invested under the new policy over the next four years to promote electric mobility and reduce vehicular pollution in the national capital. Gupta said that the new policy lays special emphasis on the transport sector and provides a roadmap for the phased transition from conventional fuel-powered vehicles to electric vehicles.
To encourage the adoption of electric vehicles, the government has announced purchase incentives for buyers. Similarly, buyers of electric three-wheelers will be eligible for incentives of Rs 50,000, Rs 40,000 and Rs 30,000 in the first, second and third years, respectively. Buyers of N1 category electric trucks will receive a purchase incentive of up to Rs 1 lakh, according to an official. The policy also provides a scrapping incentive of Rs 1 lakh for owners of BS-IV four-wheelers or below standard who scrap their vehicles and switch to electric vehicles. An official said no subsidy will be provided for hybrid vehicles. A dedicated online portal will be developed to enable applicants to apply for EV-related incentives under the policy.
The government said the policy also envisages expansion of charging infrastructure, vehicle scrapping facilities and other measures to accelerate the transition to electric mobility across the city.
दिल्ली में नई EV Policy को आज कैबिनेट ने मंजूरी दे दी है। राजधानी में व्हीकल पॉल्यूशन पर प्रभावी नियंत्रण और स्वच्छ परिवहन को बढ़ावा देने की दिशा में यह एक ऐतिहासिक कदम है।
नई EV Policy 1 जुलाई 2026 से लागू होगी और 31 मार्च 2030 तक प्रभावी रहेगी।
नीति की प्रमुख विशेषताएं:
— Rekha Gupta (@gupta_rekha) June 29, 2026
WHY DELHI MAY SERVE AS BENCHMARK
The primary reasons this policy serves as a benchmark for the rest of India include:
1. Phased Fossil-Fuel Bans
Rather than hoping consumers choose EVs, Delhiis legally restricting new internal combustion engine (ICE) registrations:
Only electric auto-rickshaws and N1 category goods carriers will be eligible for registration from January 1, 2027.
No new petrol or CNG two-wheelers will be eligible for registration from April 1, 2028.
Since two-wheelers make up over 67% of typical urban vehicle fleets in India, this targeted focus directly addresses the largest source of vehicular emissions.
2. Feebate & “FOMOnomics” Financial Strategy
Delhi is funding its green transition dynamically. Instead of depleting the government exchequer, the framework leverages a model where conventional fuel vehicles fund clean alternatives:
It imposes a 1% to 2% green cess on new petrol and CNG vehicles to fund EV subsidies.
It grants a 100% waiver on road tax and registration fees for electriccars priced under ₹30 lakh.
It provides Direct Benefit Transfer (DBT) incentives, including up to ₹30,000 for e-two-wheelers, ₹50,000 for e-three-wheelers, and up to ₹1 lakh for electric trucks in the first year.
3. Large-Scale Scrappage Integration
Most state policies fail to remove existing polluting vehicles from the road. Delhi directly links old vehicle disposal to new EV adoption by providing a ₹1 lakh incentive for scrapping older BS-IV or lower four-wheelers when owners switch to an EV.
4. Grid Decarbonisation Alignment
Electric vehiclesare among the few transport technologies that automatically become cleaner over time as the electricity grid decarbonises. As India integrates more renewable energy into its power grid, an EV bought today under Delhi’s system could reduce its carbon footprint through 2030.
With PTI Inputs
