The Delhi government has released the draft Electric Vehicle Policy 2026
The Delhi government has released the draft Electric Vehicle Policy 2026

The Delhi government has released the draft Electric Vehicle Policy 2026, which proposes significant incentives and regulatory shifts to accelerate the transition to cleaner transport. The public has until May 10, 2026, to submit suggestions and comments.

Below is a structured overview of the proposed draft policy, which is open for public comment until May 10, 2026.

1. Tax Exemptions & Financial Incentives

The draft policy focuses on making eco-friendly vehicles more affordable through road tax waivers and direct subsidies.

Vehicle CategoryPrice Cap (Ex-Showroom)Road Tax & Registration Fee ExemptionPurchase Incentive (Year 1)
Electric CarsUp to ₹30 Lakh100% ExemptionN/A (Focus on tax waiver)
Strong HybridsUp to ₹30 Lakh50% ExemptionN/A
E-Two-WheelersUp to ₹2.25 Lakh100% Exemption₹10,000 per kWh (Max ₹30,000)
E-AutorickshawsN/A100% Exemption₹50,000

2. Phased Purchase Incentives (3-Year Outlook)

To encourage immediate adoption, the Delhi government has proposed a “front-loaded” incentive structure where subsidies decrease annually.

Incentive YearE-Two-Wheelers (per kWh)Max Cap (Two-Wheelers)E-Autorickshaws
Year 1₹10,000₹30,000₹50,000
Year 2₹6,600₹20,000₹40,000
Year 3₹3,300₹10,000₹30,000

3. Scrappage Benefits

Owners who scrap their old, polluting vehicles in favor of a new EV are eligible for additional financial support, provided the purchase is made within six months of scrapping.

Vehicle PurchasedScrappage Incentive AmountSpecific Conditions
Electric Car₹1,00,000Limited to first 1 lakh applicants
E-Goods Carrier (N1)₹50,000For commercial transition
E-Three-Wheeler₹25,000Focus on L5M category
E-Two-Wheeler₹10,000Scrapping BS IV or older models

4. Regulatory Deadlines & Bans

The policy sets clear timelines for phasing out new registrations of fossil-fuel-based smaller vehicles to meet long-term sustainability goals.

Implementation DateRegulatory Action
January 2027Ban on registration of new CNG Autorickshaws
April 2028Ban on registration of new ICE Petrol Two-Wheelers
March 2030Expiry of current proposed EV Policy 2026 incentives

5. Fund Allocation & Infrastructure

A dedicated “EV Fund” will be established to manage the ₹3,954.25 crore budget, distributed as follows:

  • ₹1,718 Crore: Scrapping incentives.
  • ₹1,236.25 Crore: Direct purchase incentives.
  • ₹1,000 Crore: Expansion of charging and battery-swapping infrastructure.

The policy also outlines the development of a digital portal for streamlined approvals and monitoring of charging stations, ensuring that the transition to electric mobility is supported by a robust and accessible network.

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He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.