The Delhi government on Saturday released its Electric Vehicle Policy 2026 for public consultation. Among the key proposals of the policy are a 50% exemption on road tax and registration fees for strong hybrid cars priced up to ₹30 lakh, a ban on registration of new internal combustion engine (ICE) two-wheelers from April 2028 and a similar restriction on CNG-powered three-wheelers from 2027.

Incentives for EVs and Hybrids

The draft policy retained full tax exemptions for electric vehicles while extending partial benefits to strong hybrid cars for the first time. Electric vehicles registered in Delhi after the notification of the policy will be eligible for 100% exemption on road tax and registration fees, subject to specified conditions.

Electric cars priced up to ₹30 lakh (ex-showroom) will continue to receive full exemption on these charges until March 31, 2030. However, EVs priced above this threshold will not qualify for any such benefits.

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In a first for Delhi, strong hybrid vehicles priced up to ₹30 lakh will be eligible for a 50% exemption on road tax and registration fees. Delhi had not previously offered such incentives for hybrid vehicles. Delhi’s move could reignite interest in the hybrid segment. Automakers like Toyota and Maruti Suzuki, which have bet heavily on hybrid technology, stand to benefit directly.

Two-wheelers and CNG autos banned in Delhi?

The draft has set deadlines for phasing out fossil-fuel registrations in two key categories.

From 2027, no new CNG auto-rickshaws will be registered in Delhi. From April 2028, new registrations of petrol and diesel two-wheelers will stop. Only electric two-wheelers will be allowed after that point.

Delhi’s two-wheeler and auto-rickshaw population is enormous. Meeting these tight deadlines will require affordable EV options, accessible financing and a dense service network.

Purchase incentives linked to battery capacity

The draft introduced a structured incentive scheme linked to battery capacity, particularly for two-wheelers. For electric two-wheelers priced up to ₹2.25 lakh, incentives will start at ₹10,000 per kWh in the first year (capped at ₹30,000), reducing to ₹6,600 per kWh (up to ₹20,000) in the second year and ₹3,300 per kWh (up to ₹10,000) in the third year.

Electric three-wheelers (e-autos) may receive incentives of ₹50,000 in the first year, ₹40,000 in the second and ₹30,000 in the third. For electric goods vehicles in the N1 category, incentives are proposed at ₹1 lakh in the first year, ₹75,000 in the second and ₹50,000 in the third.

Scrapping incentives, school buses and govt vehicles

To encourage the replacement of older vehicles, the policy has proposed scrappage incentives across categories. These include ₹10,000 for two-wheelers, ₹25,000 for three-wheelers, ₹1 lakh for cars priced up to ₹30 lakh and ₹50,000 for goods vehicles.

On public transport, the policy proposes that at least 30% of school buses be electric by 2030. The government fleet is also expected to gradually shift to EVs.

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Budget allocation and implementation

Chief Minister Rekha Gupta said the draft policy aims to create a “clean, accessible and sustainable transport system” in the capital. The policy is proposed to remain in effect until March 31, 2030. The budget breakdown is telling. Of the total corpus:

  • ₹1,718 crore is for scrapping incentives — the single largest allocation
  • ₹1,236.25 crore is for purchase incentives
  • ₹1,000 crore is for charging infrastructure

Year-wise, spending ramps up from ₹965.5 crore in year one to ₹1,231.5 crore in year three, before easing to ₹744.5 crore in year four.

How to submit feedback on Delhi EV policy

The government has invited feedback from stakeholders and the general public. Suggestions can be submitted via email or post within 30 days of the notification. Authorities have advised against in-person submissions to avoid crowding.

  • Email: evpolicy2026@gmail.com
  • Post: Joint Commissioner (EV), Transport Department, Govt. of NCT of Delhi, 5/9 Underhill Road, Delhi-110054

Chief Minister Rekha Gupta said the policy will “rapidly move Delhi towards a clean, green, and modern transport system”. The previous policy, launched in 2020, had expired on March 31 and was extended by three months pending this draft.