EV Policy 2.0: Big Push for Electric Two-Wheelers, Cars, and Commercial Vehicles

The Delhi Transport Department has introduced the draft Electric Vehicle (EV) Policy 2.0 (2026–2030), marking a major step toward reducing air pollution and accelerating electric mobility in the national capital. The policy outlines a mix of financial incentives, tax exemptions, and phased restrictions designed to encourage individuals and businesses to shift from conventional fuel vehicles to electric alternatives.

Currently open for public consultation for 30 days, the draft policy reflects Delhi’s continued efforts to address its persistent air quality challenges while building a sustainable urban transport ecosystem.

Key Highlights of Delhi EV Policy 2.0

Tax Exemptions and Financial Benefits

One of the most attractive features of the policy is the 100 per cent exemption on road tax and registration fees for electric vehicles until March 31, 2030.

• EVs priced up to ₹30 lakh will receive full tax waivers
• Strong hybrid vehicles will get a 50 per cent concession
• EVs priced above ₹30 lakh will not qualify for tax benefits

Focus on Affordability

These incentives are designed to make EVs more affordable for middle-class buyers and encourage faster adoption across segments.

Phased Ban on Petrol and Diesel Vehicles

Two-Wheeler Restrictions

The policy proposes a significant shift in the two-wheeler segment:

• Registration of new petrol-powered two-wheelers will be banned from April 1, 2028

This move targets a segment that accounts for nearly 67 per cent of Delhi’s vehicle population.

Commercial Fleet Transition

• Aggregators and commercial operators will not be allowed to add new petrol or diesel two-wheelers and light goods vehicles (up to 3.5 tonnes) from January 1, 2026
• Electric three-wheelers will become mandatory from January 1, 2027

These measures aim to rapidly electrify high-usage vehicle categories.

Incentives for Electric Vehicle Buyers

Electric Two-Wheelers

For electric two-wheelers priced up to ₹2.25 lakh:

• ₹10,000 per kWh (up to ₹30,000) in the first year
• ₹6,600 per kWh (up to ₹20,000) in the second year
• ₹3,300 per kWh (up to ₹10,000) in the third year

Electric Three-Wheelers and Commercial Vehicles

• Three-wheelers: ₹50,000 (year 1), ₹40,000 (year 2), ₹30,000 (year 3)
• Light commercial vehicles (N1 category): ₹1 lakh (year 1), ₹75,000 (year 2), ₹50,000 (year 3)

These time-bound incentives are structured to encourage early adoption, with benefits gradually reducing over time.

Scrappage Policy and Additional Benefits

Incentives for Replacing Old Vehicles

The policy introduces scrappage-linked incentives to remove older, polluting vehicles from Delhi’s roads:

• ₹10,000 for two-wheelers
• ₹25,000 for three-wheelers
• ₹50,000 for N1 goods vehicles

Benefits for Electric Car Buyers

Buyers of electric cars priced up to ₹30 lakh will be eligible for scrappage incentives if they replace older BS-IV or earlier vehicles within six months. The benefit will be limited to the first one lakh applicants, ensuring early participation.

Implementation and Payment Mechanism

Direct Benefit Transfer System

Incentives will be disbursed directly to beneficiaries through bank transfers upon online claims. This system aligns with the PM E-DRIVE scheme guidelines, ensuring transparency and efficiency.

Role of Technology

Digital processing of claims is expected to reduce delays and improve user experience, making it easier for consumers to access benefits.

Environmental and Economic Impact

Tackling Air Pollution

Delhi has long struggled with severe air pollution, particularly during winter months. The transition to electric vehicles is expected to:

• Reduce vehicular emissions
• Lower dependence on fossil fuels
• Improve overall air quality

Boost to EV Ecosystem

The policy is also likely to:

• Encourage EV manufacturing and innovation
• Create jobs in charging infrastructure and maintenance
• Strengthen India’s position in the global EV market

Challenges and Industry Outlook

Infrastructure and Awareness

While the policy is ambitious, challenges remain:

• Need for widespread charging infrastructure
• Consumer awareness and confidence
• Upfront cost of EVs despite incentives

Industry Response

Automakers and fleet operators are expected to gradually align with the policy, especially as global trends increasingly favor electric mobility.

Conclusion

Delhi’s EV Policy 2.0 represents a bold and comprehensive roadmap for transitioning to cleaner transportation. By combining financial incentives, regulatory measures, and environmental goals, the government aims to accelerate EV adoption across all segments—from individual buyers to commercial operators.

While challenges such as infrastructure development and affordability persist, the policy’s clear timelines and structured incentives provide a strong foundation for long-term change. If implemented effectively, this initiative could significantly reduce pollution levels and position Delhi as a leader in sustainable urban mobility.