Delhi Govt makes EV policy attractive with subsidies

The Delhi Government’s Transport Department has officially published the draft of the Delhi Electric Vehicle (EV) Policy 2026, offering a 100 per cent exemption from road tax and registration fees for most EVs. For Strong Hybrids (under INR 30 lakh), you will get a 50per cent exemption.

If you are buying electric two-wheelers in Delhi, you may get a subsidy of up to INR 30,000 in the first year from the date of notification of the policy. As per the draft policy, electric auto-rickshaw buyers will receive a fixed incentive of INR 50,000 in the first year, and two-wheeler buyers may get up to INR 30,000. If you scrap an old Delhi-registered BS-IV or below vehicle and buy a new EV within six months, you get an extra ‘Scrapping Incentive’. The incentive will be provided on the purchase of a new EV if the purchase is made within six months of the issuance of the certificate of deposit (CoD) from an authorised scrapping facility.

The draft EV policy setting out a detailed roadmap to accelerate the capital’s shift to electric mobility through time-bound restrictions on petrol vehicles, stricter fleet regulations, incentives for EV adoption, and a large-scale expansion of charging infrastructure.

The draft, issued by the Transport Department’s EV Cell, has been placed in the public domain for 30 days of stakeholder feedback (citizens and experts) before finalisation. The policy aims to reduce vehicular emissions, which remain a key contributor to Delhi’s air pollution crisis, particularly during winter smog episodes. In one of the most significant proposals, the draft lays down clear electrification deadlines for key vehicle segments.

 From January 1, 2027, only electric three-wheelers will be permitted for new registration in Delhi. This will be followed by a complete transition for two-wheelers, with only electric models allowed from April 1, 2028.

The policy also proposes exemption from road tax and registration fees for most electric vehicles registered in Delhi during the policy period. However, electric cars priced above INR 30 lakh will not be eligible for this benefit.

According to the draft policy, eligible two-wheeler buyers will receive INR 10,000 per kWh, capped at INR 30,000 in the first year, INR 6,600 per kWh, capped at INR 20,000 in the second year, and INR 3,300 per kWh, capped at INR 10,000 in the third year. The ex-factory price of the vehicle must not exceed INR 2.25 lakh to qualify.

 To promote electric auto-rickshaws, the policy proposes incentives of Rs 50,000 in the first year, Rs 40,000 in the second year, and INR 30,000 in the third year. The benefit will be available for new registrations as well as the replacement of older CNG autos operating with Delhi permits. In the goods vehicle category, electric four-wheeler e-trucks (N1) may get incentives of up to INR 1 lakh in the first year, followed by INR 75,000 and INR 50,000 in the second and third year, respectively.

According to the draft EV Policy 2026, incentives will be disbursed through direct benefit transfer to individuals, firms and companies, provided they are residents of Delhi and the vehicle is registered in the national capital. Eligible buyers will have to apply for the subsidy through a mechanism to be notified by the Transport Department.

The policy proposes 100% exemption from road tax and registration fees for electric vehicles registered in Delhi during the policy period. Electric cars priced up to INR 30 lakh will be eligible for full exemption until March 2030, while strong hybrid vehicles will receive a 50% concessions well, a provision that is being introduced. Vehicles priced above INR 30 lakh will not be eligible for such benefits.