The Delhi Government has taken a bold step to accelerate the shift towards electric vehicles with its new draft Electric Vehicle Policy for 2026-2030. While the Central Government is phasing out its national EV subsidies, Delhi is offering strong state-level incentives that could make electric mobility far more affordable for residents. This policy stands out as one of the most aggressive in India, especially given the capital’s severe air pollution challenges.
Under the draft policy, buyers of electric two-wheelers priced up to ₹2.25 lakh (ex-factory) can avail significant subsidies linked to battery capacity. In the first year after notification, purchasers will receive ₹10,000 per kWh, capped at a maximum of ₹30,000. The incentive reduces in subsequent years to ₹6,600 per kWh (max ₹20,000) in the second year and ₹3,300 per kWh (max ₹10,000) in the third year. A minimum battery size requirement applies, typically around 3.5 kWh for eligibility. This structure strongly encourages buyers to purchase in 2026 itself to maximise benefits.
Electric three-wheelers, such as auto-rickshaws, are also well-supported with incentives of ₹50,000 in the first year, ₹40,000 in the second year, and ₹30,000 in the third year. For electric cars and four-wheelers priced up to ₹30 lakh, the policy does not offer direct purchase subsidies on the same scale as two-wheelers. Instead, it provides a scrappage incentive of up to ₹1 lakh when an old BS-IV or older vehicle is scrapped and replaced with a new electric car. Additionally, buyers enjoy 100% exemption on road tax and registration fees for electric vehicles up to ₹30 lakh until 2030, along with a 50% waiver for strong hybrid cars in the same price range.
A key condition in the policy is a restriction on immediate resale. The government is likely to impose a lock-in period (reported in some updates as up to five years), during which buyers cannot easily obtain an NOC to sell the vehicle. This measure aims to prevent subsidy misuse and ensure genuine long-term adoption. Additional benefits include incentives for scrapping old vehicles and a major push to expand charging infrastructure, with plans to set up stations every few kilometres to reduce range anxiety.
The policy also includes strict timelines to phase out petrol and diesel vehicles. New registrations of three-wheelers will be restricted to electric models from January 2027, while petrol two-wheelers will not be registered from April 2028 onwards. The broader goal is to significantly reduce pollution by transitioning the transport sector to clean energy between 2026 and 2030.
For people living outside Delhi, the benefits will be limited unless their respective state governments introduce similar schemes. With the central subsidy support diminishing, buyers in other states may face higher effective costs. Delhi residents planning to buy an EV this year or in the near future stand to gain the most, as the combination of subsidies, tax waivers, and improving infrastructure could make electric vehicles cheaper to own and operate than traditional fuel-powered ones.
The draft policy is currently open for public consultation and is expected to be finalised and notified soon — possibly within June or the next couple of months. Even under the existing framework, some EV subsidies are already available in Delhi.
This initiative reflects Delhi’s urgent need to combat pollution while making sustainable transport accessible. What are your thoughts on this policy? If you are planning to buy an EV, which state do you belong to, and do you think such incentives will convince more people to switch? Share your views in the comments.
