Delhi EV Policy Brings EV Incentives Of Up To ₹1 Lakh

The Delhi Cabinet has approved a new Electric Vehicle (EV) Policy that introduces purchase and scrappage-linked incentives across multiple vehicle segments, while envisaging around ₹15,000 crore of investment over the next four years to accelerate electric mobility in the national capital. The policy is expected to come into effect from July 1, with the government targeting electric vehicles to account for 95% of all new vehicle registrations in Delhi by 2027.

Among the headline measures is a benefit of up to ₹1 lakh for eligible buyers purchasing a qualifying electric passenger vehicle priced up to ₹30 lakh after scrapping an eligible older vehicle, subject to the conditions laid down under the policy. Eligible electric cars will also continue to receive exemption from road tax and registration charges, reducing the overall acquisition cost for buyers.

Electric two-wheelers will be eligible for purchase incentives of up to ₹30,000 during the first year of the policy, with the incentive tapering in subsequent years. Buyers replacing eligible older two-wheelers with electric models will also qualify for scrappage-linked incentives. Electric three-wheelers will receive purchase incentives of up to ₹50,000 in the first year, along with scrappage benefits for replacing eligible older auto-rickshaws. The policy also extends financial support to eligible electric light commercial vehicles, with incentives of up to ₹1 lakh.

As previously reported by Autocar Professional, the Delhi government had been working on a successor to its 2020 EV policy, with discussions centred on strengthening charging infrastructure, accelerating fleet electrification and refining the incentive framework before the revised policy received Cabinet approval.

Beyond consumer incentives, the policy envisages around ₹15,000 crore of investment over four years to expand charging infrastructure, support battery charging and swapping networks, electrify public transport and strengthen the broader EV ecosystem. The government is expected to issue a detailed notification outlining the implementation roadmap, eligibility criteria and timelines for the various incentives and infrastructure initiatives.

The policy also lays out a phased transition towards cleaner mobility. Under the proposed roadmap, only electric auto-rickshaws are expected to be registered in Delhi from January 1, 2027, while new registrations of petrol, diesel and CNG-powered two-wheelers are proposed to cease from April 1, 2028. The revised framework does not extend incentives to strong hybrid vehicles, maintaining its focus on battery electric mobility.

For the automotive industry, the policy represents one of the country's most ambitious state-level EV programmes, combining financial incentives with infrastructure investment and regulatory measures to accelerate adoption. Automakers, charging infrastructure providers, fleet operators and component suppliers will now await the detailed notification, which is expected to provide clarity on the implementation framework and eligibility criteria for the various measures announced under the policy.