Delhi EV Policy 2026 May Include Subsidies, Tax Benefits and Cheap Financing

According to a report by TOI, Delhi is all set to introduce its second electric vehicle (EV) policy in early 2026. With sharp emphasis on promoting cleaner mobility, the revamped policy promises higher subsidies, better tax relief, easy loans and scrappage-linked incentives, especially targeting commercial users and delivery sectors.

Revamped EV Subsidies and Financial Incentives

The upcoming Delhi EV policy is likely to double existing subsidies for electric 2-wheelers. Currently, buyers get ₹5,000 per kWh of battery capacity, capped at ₹30,000. This cap may rise significantly to reduce the cost difference between electric and petrol two-wheelers. In addition, interest subsidies on loans for EV purchases will be introduced, primarily helping gig workers and fleet operators.

Scrappage Incentives to Accelerate EV Shift

The 2026 policy will offer additional tax concessions and subsidies for individuals scrapping old internal combustion engine (ICE) vehicles. This dual-benefit strategy aims to reduce pollution from outdated vehicles and increase EV penetration. Buyers transitioning from ICE to EVs will stand to gain significantly from the proposed incentives.

Enhanced Charging Infrastructure and Accessibility

Addressing infrastructure gaps, the government plans to install more e-bike chargers near markets and delivery hotspots. This move targets high-demand areas and aims to reduce one of the most pressing concerns of commercial EV users, charging access. The government seeks public feedback before formalising the infrastructure blueprint.

Read More: EV Sales Soar in India in September 2025; Tata Motors Leads Electric Revolution!

Extension of Current Policy and EV Growth Stats

Delhi’s original EV policy has now been extended till March 2026 or until the revised version is officially released. While EV adoption has grown, petrol-powered 2-wheelers still dominate. In 2025, over 2,55,000 petrol 2-wheelers were registered, compared to 21,963 pure EVs. The government, however, is working to close the price gap through targeted policies.

Pending Subsidy Disbursements and Digital Reforms

Approximately ₹140 crore in EV subsidy claims remain pending. The Transport Ministry is developing a dedicated online portal for verification and quick disbursement. The Delhi High Court has directed immediate clearance of verified dues, emphasising that procedural delays cannot become a roadblock in promoting electric mobility.

Conclusion

Delhi’s upcoming EV policy seeks to strengthen adoption through increased financial support, better infrastructure and integrated scrappage incentives. With the government prioritising public feedback and addressing critical issues like delayed subsidy payments and charging challenges, this policy marks a progressive step in transforming the capital’s urban mobility framework.

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