The Commission for Air Quality Management (CAQM) has mandated a phased restriction on the registration of new petrol, diesel and CNG light goods vehicles (LGVs) across Delhi-NCR, setting the stage for a major shift towards electric vehicles in the region’s urban freight and last-mile delivery market.
Under the new timelines, registration of new N1-category LGVs—vehicles with a gross vehicle weight of up to 3.5 tonnes—will be restricted to electric vehicles in Delhi from January 1, 2027. The restriction will subsequently extend to Gurugram, Faridabad, Sonipat, Ghaziabad and Gautam Buddha Nagar from July 1, 2027, before covering other NCR districts from January 1, 2028.
For the larger N2 category, comprising vehicles with a gross vehicle weight of 3.5-7.5 tonnes, the transition will begin in Delhi from January 1, 2028. It will extend to high-vehicle-density districts from July 1, 2028, and to the remaining NCR districts from January 1, 2029.
The move comes after Delhi’s new Electric Vehicle Policy, notified on July 30, 2026, mandated that only electric N1 category goods vehicles would be allowed for fresh registrations in the national capital from January 1, 2027.
The CAQM directive expands the transition plan to other key NCR districts, with the aim of reducing emissions from commercial vehicles and improving air quality across the region.
The decision is likely to have a substantial impact on the commercial vehicle industry, particularly companies operating in e-commerce, food and grocery delivery, FMCG distribution and other urban logistics segments, where LGVs are typically used intensively.
Electric vehicle penetration in the small commercial vehicle and pickup segment has reached close to 10 percent, according to Industry estimates.
According to the analysis cited by CAQM, LGVs account for only around 1.2% of the active vehicle stock in the NCR but contribute approximately 3.3% of particulate matter emissions. Their relatively high utilisation, therefore, makes them an important target for emission reduction measures.
The inclusion of CNG vehicles in the restrictions for Delhi and high-vehicle-density districts marks an important departure from earlier clean-mobility policies, which have often treated CNG as a relatively cleaner alternative to petrol and diesel. CAQM has cited nitrogen oxide (NOx) emissions from CNG vehicles as a concern, noting that NOx can contribute to the formation of secondary particulate matter.
