Delhi Draft EV Policy 2026–2030: These Key Points You Should Know?

The Delhi government’s draft Electric Vehicle (EV) Policy 2026–2030, released on Saturday, lays out an aggressive roadmap to accelerate EV adoption, improve air quality, and build a stronger clean mobility ecosystem in the capital. Here are key points you should know:

Phase-Out of ICE Vehicles in Key Segments

As per the draft, from January 1, 2027, only electric three-wheelers will be eligible for new registration in Delhi. This will be followed by a major transition in the two-wheeler segment, where only electric models will be allowed from April 1, 2028, marking a significant push toward full electrification of urban transport.

Subsidy Structure and Eligibility

The policy proposes direct benefit transfer (DBT) incentives for individuals, firms, and companies, provided they are Delhi residents and the vehicle is registered in the capital. Applicants will need to follow a procedure to be notified by the Transport Department of the GNCTD. The policy will come into effect from the date of official notification.

Tax Exemptions on Electric Cars

Under the draft, electric cars priced up to ₹30 lakh (ex-showroom) and registered in Delhi will receive 100% exemption on road tax and registration charges until March 31, 2030. However, EVs priced above ₹30 lakh will not be eligible for any such exemptions.

The policy also proposes a 50% exemption for strong hybrid vehicles, supporting a gradual transition toward full electrification.

Scrapping Incentives for Older Vehicles

To encourage fleet modernization, the draft offers a scrapping incentive of up to ₹1 lakh for individuals purchasing a new electric car after scrapping BS-IV or older vehicles. The purchase must be made within six months of obtaining a Certificate of Deposit (CoD) from an authorised scrapping facility, and the EV must be priced up to ₹30 lakh (ex-factory).

Incentives for Two- and Three-Wheelers

Electric two-wheelers are eligible for tiered incentives:

• ₹10,000 per kWh (up to ₹30,000) in the first year
• ₹6,600 per kWh (up to ₹20,000) in the second year
• ₹3,300 per kWh (up to ₹10,000) in the third year

Eligibility is capped for vehicles priced up to ₹2.25 lakh (ex-factory).

Electric auto-rickshaws will receive incentives starting at ₹50,000 in the first year, reducing to ₹40,000 in the second year and ₹30,000 in the third year. These benefits apply to both new registrations and replacements of older CNG autos under Delhi permits.

Incentives for Goods and Commercial Vehicles

Electric e-trucks (N1 category) may receive incentives of up to ₹1 lakh in the first year, followed by ₹75,000 in the second year and ₹50,000 in the third year, supporting electrification in the logistics sector.

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Electrification of Public and Institutional Transport

The policy extends to public transport and institutional fleets. School buses are targeted for phased electrification, with 10% adoption in year two, 20% in year three, and 30% by 2030.

All government-leased and hired vehicles will transition fully to electric from the policy notification date, and future government vehicle purchases will be exclusively electric. Additionally, new intra-state buses will move toward electric mobility, with the possibility of adopting hydrogen-based alternatives in the future.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.