Delhi EV policy comes into effect: What it covers and what it does not

Delhi's new EV policy aims to attract ₹15,000 crore in investment over four years and accelerate the shift to cleaner transport, with the goal of reducing vehicle pollution by 2030

The Delhi government’s new Electric Vehicle (EV) Policy came into effect on Wednesday, July 1. The government says the policy aims to speed up the shift to electric mobility, cut air pollution and encourage investment in the sector.

 

Chief Minister Rekha Gupta said the government expects the policy to attract nearly ₹15,000 crore in investment over the next four years. The broader target is to move Delhi towards cleaner transport and reduce vehicle-related pollution by March 31, 2030.

 

The policy offers incentives to EV buyers, introduces deadlines for shifting to electric vehicles across segments and proposes expansion of charging infrastructure. At the same time, it leaves out some categories that had earlier been under discussion.

 

 

Here is a look at what the policy includes and what it does not.

 

What the Delhi EV policy includes

 

Tax relief for electric cars

 

Under the new policy, electric cars registered in Delhi and priced up to ₹30 lakh (ex-showroom) will not have to pay road tax or registration charges.

 

The exemption will apply only during the policy period and is subject to conditions laid down by the government. Electric cars priced above ₹30 lakh will not be eligible for this benefit.

 

Subsidies for electric two-wheelers

 

People buying electric two-wheelers will receive incentives, although the support reduces each year.

 

During the first year, buyers will get ₹10,000 per kWh, with a maximum benefit of ₹30,000. In the second year, the subsidy will reduce to ₹6,600 per kWh up to ₹20,000. In the third year, the incentive will fall further to ₹3,300 per kWh with a maximum limit of ₹10,000.

 

The subsidy will apply only to vehicles with an ex-factory price of up to ₹2.25 lakh.

 

Incentives for electric autos and e-trucks

 

The government has also announced support for electric three-wheelers.

 

Buyers of electric auto-rickshaws will receive incentives in phases: ₹50,000 in the first year, ₹40,000 in the second year and ₹30,000 in the third year. This will apply both to new vehicles and the replacement of existing CNG autos operating under Delhi permits.

 

For N1-category electric goods vehicles, or light commercial e-trucks, incentives will reach up to ₹1 lakh in the first year, followed by ₹75,000 in the second year and ₹50,000 in the third year.

 

The government also plans to create an online platform where applicants can apply for EV-related benefits.

 

Scrapping incentives for shifting to EVs

 

The policy introduces incentives for owners who scrap older vehicles and move to electric alternatives.

 

Owners of BS-IV and older cars who buy an electric car worth up to ₹30 lakh after scrapping their old vehicle will receive a ₹1 lakh incentive.

 

To qualify, the new vehicle must be purchased within six months of receiving a scrapping certificate from an authorised facility.

 

The draft version had also suggested incentives for two-wheelers, three-wheelers and electric trucks. Reports indicate that incentives for e-rickshaws and Gramin Sewa vehicles are still under consideration, but no final decision has been announced.

 

EV-only registrations to be introduced in stages

 

The policy sets deadlines for gradually limiting registrations of conventional vehicles.

 

From January 1, 2027, only electric auto-rickshaws will be allowed to register in Delhi.

 

From April 1, 2028, registration of new petrol and CNG two-wheelers will be phased out and only electric two-wheelers will be eligible for registration.

 

The government says these measures are meant to reduce dependence on internal combustion engine vehicles and tackle pollution from transport, especially because two-wheelers make up a large share of Delhi’s vehicle population.

 

More charging and battery-swapping infrastructure

 

To support the EV transition, the government plans to expand public charging and battery-swapping networks.

 

Financial support is expected through both central and state schemes. Delhi Transco Limited will act as the nodal agency for planning and implementing charging infrastructure across the city.

 

The policy also proposes a single-window approval system to speed up permissions for charging station operators. Vehicle manufacturers operating in Delhi will also be required to ensure public charging facilities are available at dealerships. 

 

Schools, fleets and aggregators to shift gradually

 

The policy extends beyond private buyers and includes targets for institutions and commercial operators.

 

Schools will have to gradually increase electric buses in their fleets and reach a 30 per cent share by March 31, 2030.

 

Fleet operators and delivery companies will face limits on adding new petrol and diesel vehicles in certain categories. The Delhi government has also decided that all newly hired or leased vehicles for official use will be electric, except for exempt categories.

 

Subsidy linked to a three-year lock-in

 

The policy places conditions on subsidy beneficiaries.

 

Vehicles purchased using government incentives cannot be transferred and registered in another state for the first three years. The rule is aimed at ensuring subsidies benefit Delhi users and are not used for quick resale outside the city. 

 

What the policy does not cover

 

No incentives for hybrid vehicles

 

One of the biggest exclusions is hybrid vehicles. The final policy does not provide any subsidy, road tax exemption or registration relief for hybrid vehicles. Incentives are limited only to fully electric vehicles.

 

This marks a change from the draft policy, which had proposed a 50 per cent exemption in road tax and registration charges for strong hybrid cars priced up to ₹30 lakh.

 

No tax benefits for EVs above ₹30 lakh

 

Buyers of premium electric cars will not receive road tax or registration exemptions. The benefit has been restricted to EVs priced at ₹30 lakh or below.

 

No roadmap for used EVs

 

The policy largely focuses on encouraging new EV purchases and expanding infrastructure.

 

It does not include a dedicated framework for second-hand EV sales, battery health certification for used vehicles or measures to support the resale market for electric vehicles.