The Delhi government on Monday approved a new Electric Vehicle (EV) Policy that is expected to accelerate electric two wheeler adoption through purchase incentives, mandatory EV only registrations from 2028 and a major expansion of charging infrastructure.
The policy offers incentives of Rs 30,000 for electric two wheelers in the first year, Rs 20,000 in the second year and Rs 10,000 in the third year. From April 1, 2028, only electric two wheelers will be eligible for fresh registration in Delhi. Existing petrol and diesel vehicles can continue to be used as per the current rules.
The move is expected to benefit electric two wheeler manufacturers such as Ather Energy, Ola Electric, TVS Motor Company, Bajaj Auto and Ultraviolette Automotive. Delhi is one of the country’s largest two wheeler markets and the policy provides long term visibility for EV adoption.
Reacting to the announcement, Tarun Mehta, cofounder and CEO of Ather Energy, said that Delhi has approved one of the most significant city level EV policies in India.
“The combination of incentives, phased electrification mandates and charging infrastructure creates a very strong foundation. If Delhi can become a majority EV market, it has the opportunity to become a benchmark for the rest of the country,” Mehta said in a post on X.
He added that long term policies give the EV ecosystem the confidence to continue investments and product development.
Narayan Subramaniam, CEO and Head of Design at Ultraviolette Automotive, said that the policy’s price agnostic incentives allow consumers to choose products based on range, technology, performance and design. He added that the focus on charging infrastructure recognises energy as an integral part of the EV ecosystem.
According to Anurag Mehrotra, Managing Director of JSW MG Motor India, the proposed scrappage incentives will encourage the replacement of older polluting vehicles with electric alternatives. He added that the measure will also improve air quality and reduce dependence on crude oil imports.
Beyond two wheelers, the policy also includes incentives for electric three wheelers and commercial vehicles. Electric three wheelers will receive subsidies of up to Rs 50,000 in the first year, while N1 commercial trucks will be eligible for incentives of Rs 1 lakh. Scrappage incentives have also been announced for older BS IV vehicles.
The Delhi government plans to install 32,000 charging points over the next four years with support from the PM eDrive scheme and the state government.
Approved by the cabinet led by Rekha Gupta, the policy is expected to come into effect on July 1 and remain valid until March 31, 2030. The government has allocated Rs 15,000 crore for its implementation.
According to Transport Commissioner Niharika, commercial goods vehicles contribute 33% of Delhi’s pollution, while two wheelers and three wheelers account for another 46%. The policy therefore focuses on these vehicle categories.
While Ola Electric has not commented on the final policy approved on Monday, founder Bhavish Aggarwal had welcomed the draft Delhi EV Policy in April, calling it “the beginning of the end for ICE vehicles.”