Delhi's new EV policy gives full tax relief to electric cars, No subsidies for hybrids

The Delhi government has approved a new Electric Vehicle (EV) Policy. The policy will come into effect from July 1 after receiving approval from the Delhi Cabinet. One of the biggest highlights of the new policy is a complete exemption from road tax and registration charges for electric cars priced up to ₹30 lakh (ex-showroom) and registered in Delhi.

Here's how much subsidy you can get

The government has also announced purchase incentives for electric two-wheelers over the next three years. There will be a subsidy of ₹30,000 during the first year of the policy, followed by ₹20,000 in the second year and ₹10,000 in the third year.

Electric three-wheelers will also be eligible for financial support. Buyers can claim incentives of ₹50,000 in the first year, ₹40,000 in the second year and ₹30,000 in the third year. For commercial vehicles, the policy offers a purchase incentive of up to ₹1 lakh for buyers of N1 category electric trucks.

Extra incentives for scrapping older vehicles

The government has introduced a scrapping incentive of ₹1 lakh for owners of BS-IV or older four-wheelers who scrap their existing vehicles and purchase an electric vehicle. Chief Minister Rekha Gupta said the government plans to invest around ₹15,000 crore over the next four years to support the transition towards electric mobility and improve Delhi's air quality. The policy targets making the city pollution-free by March 31, 2030.

Petrol and CNG vehicles to be phased out

As part of the phased transition, Delhi will stop registering new petrol and CNG autorickshaws from January 1, 2027, with only electric autorickshaws being eligible for registration thereafter. Similarly, registration of new petrol and CNG two-wheelers will be phased out, and from April 1, 2028, only electric two-wheelers will be registered in the city.

The policy also outlines plans to expand EV charging infrastructure, strengthen vehicle scrapping facilities and introduce other measures to support wider EV adoption across Delhi. The government has clarified that hybrid vehicles will not be eligible for any subsidy under the new policy. A dedicated online portal will also be launched to allow applicants to apply for EV-related incentives digitally.

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