Delhi Proposes EV-Only New 3Ws by 2027, 2Ws by 2028

Delhi has proposed allowing only electric vehicles for new registrations in the two- and three-wheeler segments, effectively restricting new petrol two-wheelers and internal combustion engine (ICE) three-wheelers under its draft Electric Vehicle Policy 2026–2030.

Under the proposal, only electric three-wheelers will be permitted for new registration in the national capital from January 1, 2027, followed by a similar requirement for two-wheelers from April 1, 2028. The proposals are open for public consultation for 30 days, after which the policy will be finalised. Existing vehicles are not covered by these proposed registration restrictions, and the Delhi government has invited stakeholders and the general public to submit suggestions and feedback within this period.

The move signals a clear shift in Delhi’s EV strategy from an incentive-led approach to one driven increasingly by regulatory mandates. Two-wheelers account for a dominant share of the city’s vehicle population, while high-usage segments such as two- and three-wheelers contribute significantly to daily emissions, making them the first focus of electrification.

The draft stops short of mandating electrification for private passenger vehicles, keeping the segment under an incentive-led framework even as regulatory mandates tighten for high-usage segments such as two- and three-wheelers.

The draft marks a clear departure from Delhi’s earlier EV policy, which was largely incentive-led and focused on building initial EV adoption, without specifying timelines for phasing out new ICE registrations in key segments. In contrast, the new framework introduces explicit, time-bound electrification mandates for high-volume segments such as two- and three-wheelers and commercial fleets, indicating a shift towards enforcement-driven adoption as the market matures.

The incentive structure has also been recalibrated. Under the earlier Delhi EV Policy 2020, electric two-wheelers were eligible for incentives of ₹5,000 per kWh, capped at ₹30,000, along with scrappage incentives of up to ₹5,000. In the new draft, the incentive for electric two-wheelers has been increased to ₹10,000 per kWh, capped at ₹30,000, in the first year, but is designed to taper to ₹20,000 in the second year and ₹10,000 in the third year, indicating a front-loaded but declining support structure. For electric three-wheelers, incentives remain broadly similar in structure but are now explicitly time-bound and declining, at ₹50,000 in the first year, ₹40,000 in the second year and ₹30,000 in the third year.

While most three-wheelers in Delhi run on CNG, the policy effectively targets all ICE variants in the segment by allowing only electric three-wheelers for new registrations from the proposed cut-off date.

The proposal also tightens rules for commercial mobility. It says no conventional ICE vehicles running purely on petrol or diesel will be inducted into the existing fleets of four-wheeler light commercial vehicles, N1 goods vehicles up to 3.5 tonnes and two-wheelers operated by fleet aggregators and delivery service providers from January 1, 2026. However, induction of BS-VI emission standard two-wheelers will continue to be allowed up to December 31, 2026.

Alongside the proposed mandates, the policy offers financial incentives to support EV adoption. Electric two-wheelers with an ex-factory price of up to ₹2.25 lakh will be eligible for incentives of ₹10,000 per kWh, capped at ₹30,000, in the first year from notification, reducing to ₹20,000 and ₹10,000 in subsequent years. Electric three-wheeler auto-rickshaws will be eligible for incentives of ₹50,000, ₹40,000 and ₹30,000 over three years, while electric N1 goods vehicles will receive ₹1 lakh, ₹75,000 and ₹50,000 respectively.

The proposal also includes scrappage-linked incentives for replacing older vehicles. Buyers of electric two-wheelers will be eligible for ₹10,000 on scrapping Delhi-registered BS-IV and older two-wheelers, compared with lower incentives in the earlier policy. For electric three-wheelers, the scrappage incentive is ₹25,000, while buyers of electric cars priced up to ₹30 lakh can receive ₹1 lakh for scrapping older cars, limited to the first 1 lakh eligible applicants. Buyers of electric N1 goods carriers will be eligible for ₹50,000 on scrapping older vehicles.

All electric vehicles registered in Delhi during the policy period are proposed to get 100% exemption from road tax and registration fees, subject to specified conditions. Electric cars priced at up to ₹30 lakh will get full exemption, while strong hybrid electric vehicles in the same price bracket will get 50% exemption till March 31, 2030. Electric cars priced above ₹30 lakh will not get these benefits.

Charging infrastructure forms another key pillar of the proposal. Delhi Transco Limited has been designated as the nodal agency for planning, coordination and implementation of public EV charging and battery swapping infrastructure in the city. The policy also proposes a single-window clearance system and requires OEMs operating in Delhi to ensure at least one public charging station per dealer, with a minimum number of charging points for two-, three- and four-wheelers.

Beyond vehicle adoption, the proposal outlines steps on battery recycling, battery collection centres, traceability and digital implementation. It also proposes a dedicated EV Fund and an apex committee to oversee implementation. While the proposal underlines Delhi’s intent to accelerate EV adoption more aggressively, the final contours could still change after stakeholder consultations, particularly on timelines, infrastructure readiness and cost implications.