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.
The Delhi government has approved an ambitious electric vehicle policy that eliminates registration fees and road taxes for EVs priced up to Rs 30 lakh, offers a Rs 1 lakh incentive for purchasing new EVs while scrapping old vehicles, and mandates that only electric two-wheelers can be registered starting April 2028.
However, the government dropped all types of hybrid vehicles from the incentive scheme despite steady sales growth in the segment.
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.
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.
The policy proposes an estimated financial outlay of around Rs 7,000 crore over its implementation period, including over Rs 1,500 crore for purchase incentives, more than Rs 1,500 crore towards vehicle scrapping incentives, Rs 1,000 crore for expanding charging infrastructure, and over Rs 3,000 crore in revenue foregone through road tax and registration fee waivers to encourage the adoption of electric vehicles.
The dealer will inform the purchaser at the time of booking of the vehicle whether that model is eligible for the EV purchase incentive, according to the policy.
First 1,000 electric trucks under the N2 category that carry loads ranging from 3.5 to 12 tonnes will get 10 years of exemption on ‘No entry’ timing in the national capital.
Addressing a press conference, Chief Minister Rekha Gupta said the policy, approved by the Delhi Cabinet, will come into effect from July 1 after the approval of the Lieutenant Governor, describing it as a major step towards making Delhi a pollution-free city by March 31, 2030.
She said that around Rs 15,000 crore will be invested under the new policy, adding that more than 30,000 EV charging points will be set up across the national capital. The required land has already been identified, and charging infrastructure will be developed across the city on a large scale in the coming months.
School buses will also be electrified in a phased manner. The policy aims to ensure that electric buses account for at least 10 percent of the school bus fleet by the end of the second year after the notification is issued, 20 percent by the end of the third year and 30 percent by March 31, 2030.
Under the policy, a 100 percent waiver of road tax and registration fees will be provided for all pure electric four-wheelers with an ex-showroom price of up to Rs 30 lakh.
All incentives will be transferred directly to beneficiaries’ bank accounts through Direct Benefit Transfer. A total of 4,70,104 electric vehicles were registered in Delhi till March this year.
A separate portal will be launched by the government for EV incentive benefits. Transport and vehicular emissions remain the single largest contributor to Delhi’s local PM 2.5 burden, accounting for nearly half of the pollution load.
According to official data, there were a total of 87.61 lakh vehicles registered in the city and out of this, 59.27 lakh were two-wheelers, while there were around 21 lakh four-wheelers.
During last year’s peak winter pollution period, vehicles contributed about 46 per cent to 53 percent of the city’s local PM 2.5 levels, according to a report by the Centre for Science and Environment released on December 31 last year.
The EV policy focuses on converting the old fleet into a new pure EV policy-compliant fleet, for which we are giving subsidies, transport commissioner Niharika Rai said.
Buyers of electric three-wheelers, including e-autos, 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 goods 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 or older four-wheelers who scrap their vehicles and buy an electric vehicle within six months.
The new EV policy also proposes a scrapping incentive of Rs 25,000 to three-wheeler owners, while for two-wheelers, the scrapping incentive is Rs 10,000. Delhi’s electric mobility transition is increasingly being driven by two-wheelers, with electric scooters and motorcycles accounting for nearly four in every 10 electric vehicles registered in the city.
According to Envirocatalysts, a research and advisory think tank, the city had 4.30 lakh registered electric vehicles till this year, of which nearly 1.70 lakh, or almost 40 percent, were electric two-wheelers.
Environmental experts say the focus on two-wheelers is significant as they account for the largest share of transport-related emissions in the capital.
Experts have welcomed the Delhi government’s EV Policy, saying its proposed phase-out of petrol and CNG-powered two- and three-wheelers and incentives for zero-emission vehicles could significantly reduce vehicular pollution in the national capital.
“The policy gives a good framework which can result in a reduction in vehicular emissions in Delhi in the next few years,” Sharif Qamar, fellow and associate director at The Energy and Resources Institute (TERI), said, adding that states in the Indo-Gangetic plains, which witness a sharp rise in pollution during winter, could benefit from a similar approach.
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