New Delhi: The Delhi Cabinet has approved the Delhi Electric Vehicle (EV) Policy 2.0, unveiling a comprehensive roadmap to accelerate electric mobility, reduce air pollution and encourage residents to switch from fossil fuel-powered vehicles. The policy, which is set to come into effect from July 1, 2026, includes purchase subsidies, scrappage incentives, tax exemptions and a phased transition to electric vehicles.
A major highlight of the policy is a ₹1 lakh scrappage incentive for the first one lakh owners who scrap BS-IV or older four-wheelers and purchase a new electric car priced up to ₹30 lakh. The purchase must be completed within six months of receiving the Certificate of Deposit (CoD) from an authorised vehicle scrapping facility.
The government has also announced purchase incentives for electric two- and three-wheelers. Buyers of eligible electric two-wheelers can receive subsidies of up to ₹30,000 in the first year, while electric three-wheelers will be eligible for incentives of up to ₹50,000, with the subsidy reducing gradually in subsequent years.
To encourage the retirement of older vehicles, the policy offers additional scrappage incentives:
- ₹10,000 for scrapping BS-IV or older two-wheelers.
- ₹25,000 for scrapping eligible three-wheelers.
- ₹50,000 for scrapping N1 category light commercial vehicles.
- ₹15,000 for end-of-life Gramin Seva vehicles.
The policy also grants a 100% exemption on road tax and registration charges for pure electric cars priced up to ₹30 lakh. However, unlike the earlier draft proposal, the final policy does not provide tax concessions for strong hybrid vehicles, signalling the government’s preference for fully electric mobility.
Delhi has also laid out a clear timeline for phasing out new fossil fuel-powered vehicle registrations. From January 1, 2027, only electric auto-rickshaws will be eligible for new registrations. From April 1, 2028, registrations of new petrol and CNG two-wheelers will cease, with only electric two-wheelers permitted thereafter.
To support the transition, the government plans to invest ₹15,000 crore over the next four years in EV infrastructure, including the installation of more than 32,000 public charging points, battery-swapping facilities and improvements to the power distribution network.
The policy is part of Delhi’s broader strategy to combat severe air pollution, reduce dependence on fossil fuels and increase the share of electric vehicles in the city’s transport system. While environmental experts have welcomed the initiative, they have also stressed the need for faster expansion of charging infrastructure and improved public transport to ensure a smooth transition.
