The Delhi government has approved its much-anticipated Electric Vehicle Policy 2.0, with Chief Minister Rekha Gupta announcing that the new policy will come into effect from July 1 as part of an aggressive push to accelerate the capital’s transition toward clean mobility. The policy, cleared by the Delhi Cabinet on Monday, will see the government invest nearly Rs 15,000 crore over the next four years, while aiming to ensure that 95% of all new vehicle registrations in Delhi are electric by 2027.
Rs 15,000 crore investment planned over four years
The new EV policy is being positioned as a major step in strengthening Delhi’s leadership in electric mobility adoption. According to the government, the large-scale investment will focus on expanding EV infrastructure, accelerating adoption and supporting consumers through direct incentives.
The policy forms a central part of Delhi’s long-term strategy to reduce pollution levels while building a robust ecosystem for electric transport in the national capital.
Big subsidies announced for EV buyers
In a major incentive for buyers, the government has announced direct subsidies to make electric vehicles more affordable during the initial phase of the policy.
Under the new framework, buyers purchasing electric two-wheelers will receive a subsidy of Rs 30,000. Also, the buyers purchasing electric three-wheelers will get a subsidy of Rs 50,000 in the first year
The incentives are aimed at encouraging faster adoption among individual consumers as well as commercial vehicle operators.
Only electric autos to be registered from 2027
Officials said the policy introduces strict timelines for shifting towards fully electric public and commercial transport. Under this roadmap, only electric auto-rickshaws will be registered in Delhi from January 1, 2027 and registration of new electric two-wheelers will become mandatory from April 1, 2028.
The move is expected to significantly reduce the number of conventional fuel-powered vehicles operating in the city over the next few years.
Rs 1 lakh scrapping incentive for old petrol and diesel cars
In another major announcement, owners of BS-IV four-wheelers will now be eligible for a Rs 1 lakh scrapping incentive if they choose to retire older vehicles under the policy. The scrappage incentive is expected to push older polluting vehicles off Delhi roads while supporting the shift toward cleaner alternatives.
No subsidy for hybrid vehicles despite discussions
While the draft version of the EV policy had proposed extending incentives to hybrid vehicles priced up to Rs 30 lakh, including a 50% waiver on road tax, the final policy has dropped the proposal. Government officials said hybrid vehicles will not receive any subsidy under the new EV framework, despite internal discussions over including them.
Hybrid vehicles combine traditional internal combustion engines with electric motors and often use regenerative braking systems to recharge batteries.
Earlier, a senior official had indicated that the government was evaluating incentives for hybrids, arguing that several global markets have successfully used hybrid subsidies to accelerate EV adoption. However, the proposal reportedly faced resistance from certain quarters.
Delhi targets electric mobility leadership
With EV Policy 2.0, Delhi is attempting one of India’s most ambitious clean transport transitions. The government hopes the combination of direct subsidies, stricter registration rules and large-scale infrastructure investment will help the capital emerge as a national leader in electric mobility while addressing rising concerns around air pollution and fossil fuel dependency.
The policy creates a major shift in Delhi’s transport strategy, with authorities betting heavily on electric vehicles becoming the dominant mode of urban mobility over the next few years.