Delhi draft EV policy: Up to ₹1 Lakh incentive, zero road tax for EVs till 2030

The Delhi government has released the draft of its Electric Vehicle Policy 2026–2030, outlining a mix of incentives, mandates and infrastructure measures aimed at accelerating EV adoption in the city.

Shift away from ICE vehicles in fleets

The draft policy proposes a phased shift away from petrol and diesel vehicles in high-usage segments. From January 1, 2026, no new internal combustion engine (ICE) two-wheelers or light goods vehicles will be allowed to join aggregator and delivery fleets. However, BS-VI compliant two-wheelers can continue to be inducted until December 31, 2026, after which a complete transition to electric vehicles will be mandatory.

From January 1, 2027, only electric three-wheelers, including auto-rickshaws, will be permitted for new registrations in Delhi.

Incentives for electric two-wheelers, three-wheelers and goods vehicles

Electric two-wheelers priced up to ₹2.25 lakh (ex-factory) will be eligible for subsidies of ₹10,000 per kWh in the first year (capped at ₹30,000), ₹6,600 per kWh in the second year (up to ₹20,000), and ₹3,300 per kWh in the third year (up to ₹10,000).

Electric auto-rickshaws will receive a flat incentive of ₹40,000 in the first two years and ₹30,000 in the third year.

For electric goods carriers in the N1 category, incentives have been set at ₹1 lakh in the first year, ₹75,000 in the second year and ₹50,000 in the third year.

Scrappage incentives across segments

The draft policy introduces scrappage incentives to encourage replacement of older vehicles. Owners of new electric cars can receive up to ₹1 lakh for scrapping Delhi-registered BS-IV or older vehicles, provided the purchase is made within six months of obtaining a Certificate of Deposit. This benefit will be limited to the first 1,00,000 eligible applicants and applies to electric cars priced up to ₹30 lakh.

Scrappage incentives have also been proposed for other segments, including ₹50,000 for electric goods carriers, ₹25,000 for electric three-wheelers, and ₹10,000 for electric two-wheelers under similar conditions.

All such incentives will be disbursed via direct benefit transfer to the registered owner of the scrapped vehicle.

Road tax and registration fee exemptions

The policy proposes a 100 per cent exemption on road tax and registration fees for electric cars priced up to ₹30 lakh until March 31, 2030. Strong hybrid vehicles in the same price bracket will receive a 50 per cent exemption, while electric cars priced above ₹30 lakh will not qualify for these benefits.

Charging tnfrastructure and implementation

All new infrastructure projects undertaken by civic bodies such as the Municipal Corporation of Delhi (MCD), New Delhi Municipal Council (NDMC) and Delhi Cantonment Board will be required to be EV-charging ready, with adequate electrical capacity provisioned.

Authorities will also identify suitable land parcels for public charging and battery swapping stations, with Delhi Transco Limited designated as the nodal agency for planning and coordination. A single-window clearance system has also been proposed to facilitate faster approvals for charging infrastructure.

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