Explainer: The twists and turns in Delhi’s EV roadmap

What does the new EV policy say?

The Delhi EV policy has made EVs cheaper than ever with a broad range of incentives, tax waivers and scrappage benefits for every class of EV. It provides a 100% exemption on road tax and registration fees for all new EVs, except four-wheelers, where the exemption applies only to vehicles priced up to Rs 30 lakh.

Along with making the switch to EVs more affordable, it also plans to solve the problem of range anxiety by installing 32,000 public charging points across Delhi during the policy period. The focus is not only on private vehicles but also includes three-wheelers, school buses and trucks.

However, the policy focuses exclusively on pure battery electric platforms and excludes hybrid vehicles from any subsidies or tax waivers. The draft EV policy in April had  proposed a 50% road tax and registration fee exemption for strong hybrid electric vehicles priced below Rs 30 lakh.

There is also no incentive for flex-fuel vehicles though the central government has been pushing for increased use of bio fuels at petrol pumps. The policy, with a total outlay of 15,000 crore over the next four years till March 31, 2030, includes a direct investment of Rs 7,000 crore by the state government.

Phasing out fossil fuel-powered 2/3 wheelers

The new policy lays out a roadmap to phase out new petrol and compressed natural gas (CNG) vehicle registrations in selected categories over the coming years. From January 1, 2027, only electric auto rickshaws will be eligible for new registration. From April 1, 2028, the registration of new petrol or CNG two-wheelers will not be allowed.

With registration of only electric two-wheelers allowed from that date, those still desiring to a a new petrol/ CNG bike or scooter must do so before this deadline. The early 2000s had seen Delhi shift its entire public bus, taxi, and auto-rickshaw fleet to CNG, helping clean up the city’s air.

While existing internal combustion engine (ICE)/ CNG vehicles will continue to ply till the end of their lifecycle, the policy nudges citizens towards electric mobility. Given that two-wheelers constitute nearly 67% of vehicles registered in Delhi, their rapid electrification is critical for reducing emissions.

How it affects prospective buyers

THE POLICY FUNDAMENTALLY changes how vehicles will be purchased and registered in the capital. For early adopters of EVs, the incentives are quite alluring. Besides the exemption on road tax and registration fees, scrapping a Delhi-registered BS IV or older petrol or diesel car and purchasing a new electric car priced under Rs 30 lakh within six months will be eligible for a scrappage bonus of Rs 1 lakh.

This benefit is limited to the first one lakh eligible applicants. Buyers of electric two-wheelers priced under Rs 2.25 lakh can claim a subsidy of up to Rs 30,000 in the first year of implementation. The subsidy goes down to Rs 20,000 in the second year and Rs 10,000 in the third.

Scrapping an older two-wheeler or auto rickshaw will yield another Rs 10,000 and Rs 25,000, respectively. However, electric vehicles purchased by availing the benefits under the policy cannot be sold or registered in another state for three years.

Will this help improve air quality?

The stated objective of the policy is to completely transition the national capital toward zero-emission transit by March 31, 2030. Vehicular emissions are seen as the biggest contributor to Delhi’s air pollution, especially in winter, with an estimated 1.1 million vehicles entering and exiting Delhi daily.

Within the transport sector, two-wheelers were the largest contributors to PM2.5, PM10, sulphur dioxide and carbon monoxide emissions. Three-wheelers were found to be the largest source of volatile organic compounds. While the new policy can somewhat reduce vehicular pollution by ensuring more and more EVs replace petrol and

CNG vehicles on the roads, Delhi faces a peculiar situation with vehicles — both private and public — from neighbouring states entering and exiting the city every day. Without a pan-Delhi-NCR EV push, the benefits of the Delhi EV policy may not be fully realised.

Will more EVs be sold now?

With more than 107,000 was registered in Delhi in FY26, up from 83,512 a year earlier, it now remains to be seen to what extent the new incentives are able to further push the sales of EVs. For those already convinced about the benefits of EVs, the policy incentives may provide the necessary push.

And for those who still swear by petrol/ diesel vehicles, the tax waivers and benefits may not. Given the price gap between electric vehicles and ICE vehicles, many residents may opt to register their new petrol/ CNG vehicles in neighbouring cities and ply them in Delhi.

Prospective electric 2W buyers may also factor in that the Delhi government’s incentives are not substantially different from the benefits under the PM E-drive scheme. For instance, under the PM E-drive scheme, the incentive is Rs 2,500 per kWh, capped at Rs 5,000 per vehicle.

The maximum ex-factory price eligible for subsidy support is capped at Rs 1.5 lakh. With the subsidy window closing on July 31, 2026, buyers may wait to see the quantum of subsidies that the renewed scheme could bring in.