The Delhi government on Wednesday officially notified the Delhi Electric Vehicles Policy 2026, setting in motion an ambitious roadmap to accelerate electric vehicle (EV) adoption, improve air quality and strengthen the capital's electric mobility ecosystem, according to a government notification.
Financial Incentives for EV Buyers
Under the new policy, all electric cars with an ex-showroom price of Rs 30 lakh or less registered in Delhi will receive a full exemption from road tax and registration fees, as per the notification. The government has also announced subsidies for electric two-wheelers: buyers will receive an incentive of Rs 30,000 in the first year, Rs 20,000 in the second year and Rs 10,000 in the third year. For electric three-wheelers, purchase incentives go up to Rs 50,000 in the first year, Rs 40,000 in the second year and Rs 30,000 in the third year. The policy explicitly excludes hybrid vehicles, focusing exclusively on battery electric vehicles.
Phased Transition to Electric Mobility
The policy lays down a phased transition towards electric mobility across vehicle categories. Only electric auto-rickshaws will be registered in Delhi from January 1, 2027. Registration of new petrol and CNG two-wheelers will be phased out from April 1, 2028, after which only electric two-wheelers will be eligible for registration.
Rs 15,000 Crore Investment in Charging Infrastructure
To support the growing EV fleet, the Delhi government plans to invest around Rs 15,000 crore over the next four years, according to the notification. More than 30,000 EV charging points will be established across the city. The policy also includes a dedicated online portal to process incentives through Direct Benefit Transfer (DBT) and introduces a three-year lock-in period, preventing beneficiaries from registering their electric vehicles in another state during that time.
Scrapping Incentive for Old Vehicles
As part of efforts to replace older polluting vehicles, the policy introduces a scrapping incentive for electric car buyers. Buyers purchasing a new electric car priced up to Rs 30 lakh will be eligible for a scrapping incentive of Rs 1 lakh if they scrap a Delhi-registered Bharat Stage-IV or older car through an authorised scrapping facility and complete the purchase within six months of receiving the Certificate of Deposit. The benefit will be available to the first one lakh eligible applicants.
| Incentive Category | First Year | Second Year | Third Year |
|---|---|---|---|
| e-2W purchase incentive | Rs 30,000 | Rs 20,000 | Rs 10,000 |
| e-3W purchase incentive | Up to Rs 50,000 | Up to Rs 40,000 | Up to Rs 30,000 |
| e-car road tax & registration | Full exemption | Full exemption | Full exemption |
| Scrapping incentive (e-car) | Rs 1 lakh | – | – |
Implications for EV Manufacturing and Supply Chain
For manufacturing executives and procurement professionals, the policy creates a clear demand signal for battery electric vehicles and associated charging infrastructure in the National Capital Region. The Rs 15,000 crore investment over four years and the target of 30,000 charging points will require sustained production of chargers, cables, and power electronics. The phase-out of petrol two-wheeler registration from April 2028 gives OEMs a fixed timeline to shift manufacturing capacity toward electric two-wheelers. The exclusion of hybrid vehicles means that only pure battery electric models will benefit from the incentives, which may influence product planning for automakers serving the Delhi market. The scrapping incentive for old vehicles is capped at one lakh applicants, which could drive a wave of replacement demand for entry-level electric cars priced up to Rs 30 lakh. Manufacturers and suppliers should note the three-year lock-in period for subsidised vehicles, which prevents cross-state arbitrage and ensures the EVs remain registered in Delhi for at least three years. The policy came into effect from July 1, 2026 and will remain in force until March 31, 2030, providing a multi-year policy framework for capacity planning.
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