Delhi Draft EV Policy 2.0 Pushes Aggressive Shift to Electric Mobility

Industry Outlook Team | Monday, 13 April 2026

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Detailed Incentive Structure

Electric Two-Wheelers (decreasing over 3 years):

Year of Registration	Incentive
Year 1 from date of notification	INR 10,000 per kWh, up to a maximum of INR 30,000
Year 2 from date of notification	INR 6,600 per kWh, up to a maximum of INR 20,000
Year 3 from date of notification	INR 3,300 per kWh, up to a maximum of INR 10,000

Electric Three-Wheelers (commercial):

Year of Registration	Incentive
Year 1 from the date of notification	INR 50,000
Year 2 from the date of notification	INR 40,000
Year 3 from the date of notification	INR 30,000

Electric Four-Wheeler Goods Vehicles (N1 category):

Year of Registration	Incentive
Year 1 from the date of notification	Rs 1,00,000
Year 2 from the date of notification	Rs 75,000
Year 3 from the date of notification	Rs 50,000

Electric Car Buyers (private use):

Eligible for scrappage incentive if replacing old BS-IV or older vehicles

Applicable for cars priced up to INR 30 lakh (ex-showroom)

Must scrap old Delhi-registered vehicle within six months

Limited to first 100,000 applicants

Additional benefits:

Up to INR 50,000 for retrofitting old petrol/diesel vehicles

100 percent road tax exemption for EVs (up to INR 30 lakh)

Link to Air Quality Improvement

EVs produce zero tailpipe emissions, reducing PM2.5 and PM10 levels
Direct reduction in nitrogen oxide (NOx) emissions
Targets one of the largest contributors to Delhi’s pollution—transport
Complements other pollution control measures such as dust management and industrial regulation

Challenges and Concerns

Infrastructure gap: Charging network expansion must keep pace with adoption
High upfront cost: EVs remain expensive despite subsidies
Implementation complexity: Enforcing bans and mandates may face resistance
Battery disposal risks: Recycling systems need to be robust and scalable
Equity concerns: Restricting incentives to residents may exclude some users

Conclusion

The Draft EV Policy 2.0 signals a clear policy shift toward enforcement-led adoption of electric mobility. By directly linking vehicle electrification with air quality outcomes, the government is attempting to address one of Delhi’s most persistent environmental challenges. Its success, however, will depend on timely implementation, infrastructure readiness, and the ability to balance regulatory ambition with practical feasibility.

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