The Delhi Cabinet has approved a new Electric Vehicle (EV) Policy that exempts electric cars priced up to Rs 30 lakh (ex-showroom) from road tax and registration fees. The policy will take effect from July 1 and forms part of the government’s plan to accelerate EV adoption and reduce vehicular pollution in the national capital.



Chief Minister Rekha Gupta said the government will invest around Rs 15,000 crore over the next four years to support electric mobility. She said the policy is aimed at helping Delhi become pollution-free by March 31, 2030, with a phased transition from conventional fuel-powered vehicles to electric alternatives, particularly in the transport sector.



The policy also introduces purchase incentives across multiple EV categories. Buyers of electric two-wheelers will receive subsidies of Rs 30,000 in the first year, Rs 20,000 in the second year and Rs 10,000 in the third year. Those purchasing electric three-wheelers will be eligible for incentives of Rs 50,000, Rs 40,000 and Rs 30,000 over the same three-year period.



For commercial vehicles, buyers of N1 category electric trucks will receive a purchase incentive of up to Rs 1 lakh. The government has also announced a scrappage incentive of Rs 1 lakh for owners of BS-IV or older four-wheelers who scrap their existing vehicles and replace them with electric models.



The policy sets a timeline for phasing in electric mobility across selected vehicle segments. From January 1, 2027, only electric autorickshaws will be eligible for new registrations in Delhi. Registration of new petrol and CNG-powered two-wheelers will be phased out, with only electric two-wheelers to be registered from April 1, 2028.



The government has clarified that hybrid vehicles will not be eligible for any subsidy under the policy. It will also launch a dedicated online portal to process applications for EV incentives. Along with buyer incentives, the policy includes measures to expand charging infrastructure, develop vehicle scrapping facilities and strengthen the overall ecosystem required to support faster adoption of electric vehicles across Delhi.




Industry
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Mr. Nirmal K Minda, President ASSOCHAM*





*ASSOCHAM Applauds Delhi’s EV Policy as a Landmark Step Towards Cleaner Air*



ASSOCHAM welcomes the Delhi Government’s EV Policy 2026 as a forward-looking initiative to address the capital’s persistent air pollution challenge while advancing sustainable urban mobility.



The proposed investment of ₹15,000 crore towards strengthening the EV ecosystem, including charging infrastructure and incentives, reflects the scale of commitment required to accelerate the clean mobility transition.



The policy has the potential to substantially reduce vehicular emissions while creating new economic opportunities and can serve as a model for other states to adopt similar clean mobility initiatives suited to their local needs.