Key facts
- Delhi has launched 'Delhi EV Policy 2.0' to accelerate the transition to electromobility.
- The policy allocates 15,000 crore rupees (approximately $1.57 billion) over four years.
- New registrations of fossil fuel three-wheelers and light-duty trucks will be prohibited from January 1, 2027.
- New registrations of fossil fuel two-wheelers will be prohibited from April 1, 2028.
- Incentives include tax and registration fee exemptions for EVs up to 30 lakh, and purchase incentives up to 1 lakh rupees.
- A scrappage incentive is offered for up to 100,000 eligible applicants.
The Delhi government is intensifying efforts to combat severe air pollution with a new 150 billion rupee ($1.57 billion) electric vehicle initiative. The 'Delhi EV Policy 2.0', effective from July 1, 2026, to March 31, 2030, aims to accelerate the transition to electromobility by combining purchase incentives, scrappage bonuses, and phased bans on internal combustion engine vehicles.
Under the new policy, only battery-electric auto-rickshaws and N1-class trucks will be eligible for registration from January 1, 2027, followed by electric two-wheelers from April 1, 2028. The policy offers a 100% exemption from vehicle tax and registration fees for electric cars priced up to 30 lakh (just under €28,000), though this benefit is now limited to a smaller range of models. Purchase incentives are also available, ranging from 30,000 rupees for electric two-wheelers to 1 lakh for electric commercial vehicles, with amounts decreasing over the years. A scrappage incentive is provided for the first 100,000 eligible applicants who trade in old vehicles for a new electric vehicle priced up to 30 lakh.
The policy aims for 95% of all new vehicle registrations in the city to be electric by next year, explicitly excluding plug-in hybrids from incentives. In parallel, Delhi plans to install 32,000 charging stations and has allocated land for the necessary infrastructure. Previous measures include bans on petrol and diesel vehicles older than 15 and 10 years, respectively, and a restriction on fuel sales for vehicles older than 15 years since spring 2025.
Vehicles are identified as a significant contributor to Delhi's pollution, causing 23% of winter pollution according to a report by the Commission for Air Quality Management. Two-wheelers alone constitute 67% of all registered vehicles in the city. The policy's sequencing of mandates for three-wheelers and light trucks before two-wheelers reflects pollution priorities and market readiness, though critics raise concerns about the speed of transition for those who can least afford it. The success of the policy hinges on the timely delivery of the planned charging infrastructure.