Automakers Welcome Delhi EV Policy, Back Pure-EV Focus and Scrappage Incentives

Automakers have welcomed Delhi’s new electric vehicle policy, backing its focus on pure electric vehicles, scrappage-linked incentives and charging infrastructure as the national capital prepares to accelerate its transition towards cleaner mobility.

The Delhi Cabinet has approved the policy with a target of electric vehicles accounting for 95% of all new vehicle registrations in the city by 2027. The framework, expected to come into effect from July 1, also envisages around ₹15,000 crore of investment over the next four years.

Tata Motors Passenger Vehicles Ltd say the policy provides long-term direction for the automotive industry and reinforces the case for directing public incentives towards zero-emission vehicles.

“Delhi has once again demonstrated leadership in doing the right thing. By retaining ambitious electrification timelines for high-usage vehicle segments and focusing policy incentives on pure EVs, the Government has reinforced the principle that public support should benefit and accelerate technologies that deliver the maximum environmental benefit with zero-emissions,” the automaker said. 

“This policy provides long-term direction for the industry, strengthens confidence in India’s EV ecosystem and can serve as a benchmark for other states pursuing cleaner urban mobility,” Tata Motors said.

The policy offers purchase and scrappage-linked benefits across passenger vehicles, two-wheelers, three-wheelers and light commercial vehicles.

Eligible buyers purchasing an electric passenger vehicle priced up to ₹30 lakh after scrapping an eligible older vehicle could receive a benefit of up to ₹1 lakh. Electric cars will also continue to be exempt from road tax and registration charges.

Anurag Mehrotra, Managing Director of JSW MG Motor India, said the policy could reshape mobility choices in the national capital and help reduce both pollution and dependence on imported crude oil.

“This is a step in the right direction towards improving air quality, promoting cost-effective travel, and protecting national interests by reducing crude oil dependency. The incentive to promote scrapping of older vehicles and replacing with new EVs is also an important measure, as poorly maintained older vehicles are one of the key contributors to vehicular pollution. The new Delhi EV Policy can serve as a pilot for other states and offer valuable insights for wider adoption and implementation,” Mehrotra said.

Nirmal K Minda, president of ASSOCHAM, said the proposed investment reflects the scale of commitment required to accelerate Delhi’s transition towards cleaner mobility.

“The proposed investment of ₹15,000 crore towards strengthening the EV ecosystem, including charging infrastructure and incentives, reflects the scale of commitment required to accelerate the clean mobility transition,” Minda said.

“The policy has the potential to substantially reduce vehicular emissions while creating new economic opportunities and can serve as a model for other states to adopt similar clean mobility initiatives suited to their local needs,” he added.

Scrappage-linked benefits form an important part of the new framework. The policy seeks to encourage owners to replace older and more polluting vehicles with electric alternatives.

Electric two-wheelers will be eligible for purchase incentives of up to ₹30,000 in the first year. The benefit will taper in subsequent years. Buyers scrapping eligible older two-wheelers will receive an additional incentive.

Electric three-wheelers will qualify for purchase incentives of up to ₹50,000 in the first year. Scrappage benefits will also be available for replacing eligible older auto-rickshaws. Eligible electric light commercial vehicles could receive incentives of up to ₹1 lakh.

Sudarshan Venu, Chairman of TVS Motor Company, described the policy as proactive and forward-looking.

“We welcome the Delhi government’s new EV policy which is proactive & forward looking. We are fully committed to developing sustainable mobility product and solutions to drive further EV adoption,” Venu said.

Madhumita Agrawal, Founder and CEO of Oben Electric, said the policy addresses the main enablers required to accelerate EV adoption and gives consumers and manufacturers greater clarity.

“The policy’s focus on two-wheelers is particularly significant. Motorcycles form the backbone of personal mobility and represent the largest opportunity to accelerate electrification at scale. As cities like Delhi advance their clean mobility ambitions, expanding the adoption of electric motorcycles will be critical to delivering meaningful environmental impact and making electric mobility accessible to a much larger base of riders. This also places greater responsibility on manufacturers to build electric motorcycles that can truly replace conventional motorcycles on performance, reliability, safety and ownership experience,” Agrawal said.

Beyond incentives, the policy lays out a phased roadmap for the electrification of high-usage vehicle categories.

Only electric auto-rickshaws are expected to be registered in Delhi from January 1, 2027. The roadmap also proposes ending new registrations of petrol, diesel and CNG-powered two-wheelers from April 1, 2028.

Narayan Subramaniam, CEO and Head of design at Ultraviolette Automotive, said the two-wheeler transition and support for charging infrastructure could change mobility in the capital.

“We welcome Delhi’s commitment to an all-electric two-wheeler future by 2028 which alters the future of the city its size in many ways. The price-agnostic consumer support matters because it doesn’t penalise buyers who want more from their machine - whether in terms of range, tech, performance or design - and the push on charging infrastructure finally treats energy as part of the product rather than an afterthought. Clean technology is the way forward and we at Ultraviolette are making that transition exciting,” Subramaniam said.

Hemant Kabra, Founder of BGauss commented. "The Delhi Government's approval of the ₹15,000-crore EV policy is a significant and forward-looking step towards accelerating electric mobility adoption in India. By combining targeted financial incentives, tax exemptions, and a clear roadmap for the gradual transition away from conventional vehicles, the policy creates the right conditions to strengthen consumer confidence while making EV ownership more accessible.

For the electric two-wheeler segment in particular, the structured subsidy framework linked to battery capacity has the potential to meaningfully lower the entry barrier for first-time EV buyers, helping expand adoption across a much wider consumer base.

Importantly, this policy also gives strong momentum to a category that is transitioning from cautious early adopters to more confident, mainstream consumers of electric mobility.

At BGauss, we believe initiatives like these are instrumental in moving electric mobility from an emerging category to a mainstream, smarter mobility choice for everyday commuters. They create a stronger ecosystem where policy, infrastructure, manufacturers, and consumers can progress together with greater confidence.

We commend the Delhi Government's progressive vision and hope this policy serves as a catalyst for similar initiatives across other states, paving the way for a more cohesive and accelerated EV transition across the country."

Priyank Rakholiya, Co- Founder of Avore Electric stated, “Delhi's new EV Policy is a decisive step towards accelerating India's transition to clean mobility. The policy rightly recognises that two-wheelers are at the heart of urban transportation and represent the largest opportunity to drive EV adoption at scale. For the electric two-wheeler segment, the purchase incentives and battery capacity-linked subsidy framework can make EV ownership more accessible for first-time buyers, encouraging wider adoption across a much larger consumer base."

"Combined with the government's investment in charging infrastructure and a clear long-term roadmap for electrification, the policy provides both consumers and manufacturers with the confidence to accelerate this transition. As the market moves beyond early adopters, the focus must now be on building electric motorcycles that can genuinely replace conventional motorcycles on performance, reliability, safety and overall ownership experience. We welcome the Delhi Government's forward-looking approach in creating a policy framework that balances consumer incentives, infrastructure development and long-term electrification goals. This provides the right foundation to accelerate the adoption of electric mobility at scale”.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE commented that, "The EV Policy 2026 approved by Delhi Cabinet is one of the most ambitious electric mobility transitions any state has attempted yet, and its impact is likely to extend well beyond the automotive sector. The commitment of over 30,000 charging points, purchase incentives, and the 10-year exemption from 'No Entry' for electric trucks signal a shift for the city's logistics and warehousing ecosystem. We expect the fleet operators to increasingly prioritise EV-ready infrastructure, and this is likely to become a key factor in how occupiers and developers plan industrial, retail, and commercial spaces across the capital going forward."

Rajat Malhan, Chief Business Officer, Indofast Energy commented on infrastructural and operational readiness, saying, "Delhi's EV Policy 2.0 is a clear signal that the era of voluntary EV adoption is over, what follows is execution at scale. The policy has solved the demand side; the industry must now prove that infrastructure can absorb hundreds of thousands of new electric vehicles without creating bottlenecks that push fleet operators back to petrol.

This is where operational readiness matters. A delivery rider or auto-rickshaw operator switching to electric needs the same refueling convenience they had with CNG or petrol, available everywhere, completed in minutes, affordable daily. Battery swapping delivers exactly this: a two-minute energy refill at up to 40% lower costs, with no downtime eating into earnings."

The policy maintains its focus on battery electric vehicles and does not extend incentives to strong hybrid vehicles.

It also seeks to expand public and private charging infrastructure, battery-charging and swapping networks, and the electrification of public transport. These measures form part of the proposed ₹15,000 crore investment programme over four years.

The Delhi government had been working on a successor to its 2020 EV policy, with discussions focused on charging infrastructure, fleet electrification and a revised incentive framework.