EV policy 2.0 signals a continuation of Delhi government’s proactive approach, aligning mobility transformation with its urgent need to address air pollution
Delhi has been a pioneer in electric mobility. The journey started back in 2020 when it became one of the first states to launch a comprehensive electric vehicle policy that combined purchase incentives with measures to build the charging infrastructure, expand battery swapping, waive road tax and registration feeds and creation of dedicated EV cells. The policy significantly encouraged rapid adoption of electric two, three wheelers, e-rickshaws and commercial fleets.
Delhi’s example demonstrates that policy certainty, financial incentives and ecosystem development can rapidly scale electric mobility. The city’s widespread deployment of electric buses, growth of electric autos and rickshaws and last mile delivery fleets and expanding public charging infrastructure has set a benchmark for transport decarbonisation in India.
Building on the success, the Delhi government has now introduced, what many call, a revolutionary new EV policy 2.0 that focuses not only on encouraging adoption but also accelerating market transformation. The Delhi Cabinet recently greenlit and approved its new EV policy with an outlay of Rs 15,000 crore, envisaged to be invested in the next four years, to promote electric mobility and reduce urban air pollution.
The new policy presented by the Delhi government recently in the form of EV policy 2.0 signals a continuation of its proactive approach, aligning mobility transformation with its urgent need to address air pollution and reduce dependence on conventional fuels. It reflects a more systemic, integrated strategy that embeds electrification into the city’s transport planning.
The policy is likely to be implemented from July 1, according to media reports. The government has stressed that the new policy lays more emphasis on the transport sector and provides a roadmap for phased transition from conventional fuel powered vehicles to EVs. It has set a target of ensuring that 95% of all new vehicle registration in the capital are electric from 2027.
Fig 1: An e-rickshaw driver starts his workday near a metro station in Delhi.Pic by Poshali Goel for the Rest of World
According to reports, “ the government will provide a Rs 30,000 subsidy to all electric two wheeler purchasers and Rs 50,000 subsidy to all three wheeler buyers in the first year of Delhi EV Policy.” As per government announcement, “all electric cars with an ex-showroom price of Rs 30 lakh or less registered in the national capital will be granted 100 per cent exemption on road tax and registration fees.”
Apart from this, consumers buying electric two-wheelers will also be eligible to get a subsidy of Rs 30,000 in their first year, Rs 20,000 in the second and Rs 10,000 in the third year, reports suggest, adding that Starting January 1, 2027, fresh registrations in Delhi will be restricted to electric three-wheelers (e3Ws) and N1 category light commercial vehicles (LCVs) with a gross weight not exceeding 3.5 tonnes. This transition will further expand on April 1, 2028, when new registrations for two-wheelers in the national capital will be limited exclusively to electric models (e2Ws), they said.
Experts have pointed out that the Delhi government's latest policy is poised to serve as a model for other states, noting that its strength lies not only in the magnitude of the investment but also in its strategic design. They pointed out that the new policy envisages establishing a strong and robust policy by integrating financial incentives, phased electrification requirements, and robust charging infrastructure.
The Delhi government has said that out of the total budget earmarked as part of the policy, approximately Rs 7,000 crore will be specially earmarked for boosting EVs in the city in the four-year period, while Rs 8,000 crore will be allocated towards EV infrastructure and tax exemptions in the next four years.
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