Capital Accelerates Green Mobility Push with Purchase Incentives, Road Tax Waivers, and a Phased Shift to Electric Two-Wheelers and Autorickshaws

In a major boost to electric mobility, the Delhi government has approved a new Electric Vehicle (EV) Policy that offers significant financial incentives for buyers and sets an ambitious roadmap for transitioning the city's transport system towards cleaner, zero-emission vehicles. The policy aims to increase EV adoption, reduce pollution, and strengthen Delhi's position as one of India's leading electric mobility markets.

100% Road Tax and Registration Fee Waiver

The centrepiece of the new policy is a complete exemption from road tax and registration fees for electric cars priced at ₹30 lakh or below (ex-showroom). The benefit will apply to all eligible electric cars registered in Delhi, substantially lowering the initial ownership cost for consumers.

The government believes the move will encourage middle-income buyers to switch from conventional petrol and diesel vehicles to electric alternatives while supporting India's broader clean-energy goals.

Attractive Subsidies for Electric Two-Wheelers

To accelerate EV penetration in the country's largest two-wheeler market, the government has introduced a three-year incentive structure for electric scooter and motorcycle buyers.

The subsidy plan includes:

• ₹30,000 incentive during the first year of the policy.

• ₹20,000 incentive during the second year.

• ₹10,000 incentive during the third year.

The gradual reduction in subsidies is intended to encourage early adoption while allowing manufacturers to achieve greater economies of scale and lower production costs over time.

Petrol and CNG Vehicles to be Phased Out

The policy also outlines a clear timeline for reducing the registration of conventional fuel-powered vehicles.

Beginning January 1, 2027, Delhi will register only electric autorickshaws, effectively ending registrations for new petrol and CNG-powered autos.

In another landmark reform, registrations of new petrol and CNG-powered two-wheelers will be phased out. From April 1, 2028, only electric two-wheelers will be eligible for fresh registrations in the national capital.

These measures are expected to significantly reduce vehicular emissions and improve urban air quality over the coming years.

Focus on Cleaner Air and Sustainable Transport

Delhi has consistently faced severe air pollution challenges, making the transition to electric mobility a key component of its environmental strategy. The latest EV policy complements ongoing initiatives to expand public charging infrastructure, promote battery-swapping solutions, and encourage private investment in the electric mobility ecosystem.

Officials expect the policy to increase EV penetration across passenger vehicles, two-wheelers, commercial fleets, and public transport while reducing dependence on fossil fuels.

Positive Outlook for the EV Industry

The policy is likely to provide a strong demand boost for electric vehicle manufacturers, battery suppliers, charging infrastructure companies, and component makers. Leading EV brands operating in India could benefit from increased consumer demand as the cost advantage of electric vehicles improves under the new incentive framework.

Automobile analysts believe Delhi's policy could serve as a model for other states looking to accelerate EV adoption while balancing environmental and economic objectives.

What It Means for Consumers

For buyers considering an electric vehicle, the combination of tax exemptions and purchase subsidies significantly lowers the upfront cost of ownership. Combined with lower running costs, reduced maintenance expenses, and expanding charging infrastructure, the new policy strengthens the financial case for switching to electric mobility.

Outlook

The approval of Delhi's latest EV Policy marks another significant milestone in India's clean transportation journey. As the policy comes into effect, the automotive industry will closely monitor its impact on vehicle sales, investment in charging infrastructure, and the pace of the capital's transition toward a fully electric mobility ecosystem.