Delhi to Ban Gasoline Two-Wheelers by 2027, Cap Fuel Cars per Home in EV Push: Reuters

India's capital, New Delhi, has unveiled a comprehensive draft electric vehicle (EV) policy aimed at significantly reducing air pollution and promoting sustainable transportation. As reported by Reuters on the policy proposes several stringent measures to transition the city towards cleaner mobility solutions.

Key Provisions of the Draft EV Policy:

1. Ban on Fossil Fuel Two-Wheelers: Starting April 1, 2027, the sale of new gasoline, diesel, and gas-powered two-wheelers, including motorcycles and scooters, will be prohibited in Delhi. This move targets a significant reduction in vehicular emissions, as two-wheelers constitute a large portion of the city's vehicle population.

2. Limit on Fossil Fuel Cars per Household: The policy restricts households to owning a maximum of two fossil fuel-powered cars. Any additional cars purchased must be electric vehicles. This measure aims to curb the proliferation of gasoline and diesel cars in the city.

3. Incentives for EV Adoption: To encourage the transition to electric mobility, the government plans to offer cash incentives of up to $350 for the purchase of electric bikes and scooters. Additionally, local taxes on hybrid vehicle purchases will be waived, aligning their cost benefits with those of fully electric vehicles.

4. Petrol Levy for EV Funding: A new levy of 0.5 rupees ($0.0059) per litre of petrol sold will be imposed. The revenue generated from this levy is intended to fund EV incentives and infrastructure development.

5. Targeted EV Penetration: The policy sets an ambitious goal of achieving a 30% market share for electric vehicles by 2030, a significant increase from the 2.7% recorded in 2023.

6. Financial Implications: The implementation of the policy is estimated to cost the Delhi government approximately 28.6 billion rupees. The policy is currently in draft form and subject to changes based on feedback from stakeholders, including automobile manufacturers and the public.

The proposed ban on fossil fuel two-wheelers is expected to have a substantial impact on Delhi's residents, particularly those from lower- and middle-income groups who rely heavily on two-wheelers for daily commuting. In 2024 alone, nearly 450,000 new two-wheelers were sold in the city.

Manufacturers such as Bajaj Motors, TVS, and Hero MotoCorp, which have a significant market share in the two-wheeler segment, may face challenges due to the shift in policy, Reuters noted. However, the growing demand for electric two-wheelers could offset some of the negative impacts, provided these companies adapt to the changing market dynamics.

Delhi's draft EV policy aligns with India's broader objectives of achieving energy independence and meeting net-zero emission targets. By reducing reliance on fossil fuel-powered vehicles, the city aims to tackle the severe air pollution that plagues it, especially during the winter months when atmospheric conditions exacerbate the problem.

The policy represents one of the most aggressive steps taken by the city to combat pollution, which often necessitates emergency measures such as construction bans, school closures, and flight disruptions.