Delhi EV Policy 2026: Industry welcomes Pure-EV Push and Incentives

India's leading automakers have welcomed Delhi's new EV Policy, which targets 95% electric vehicle registrations by 2027. The policy offers attractive purchase and scrappage incentives, expands charging infrastructure, and reinforces the government's commitment to battery electric vehicles while encouraging cleaner urban mobility.

India’s leading automakers and electric mobility companies have welcomed the Delhi government’s new Electric Vehicle (EV) Policy, praising its strong emphasis on battery electric vehicles (BEVs), scrappage-linked incentives, and expanded charging infrastructure. Industry leaders believe the policy will accelerate the national capital’s transition toward cleaner, zero-emission mobility while setting a benchmark for other states.

The Delhi Cabinet has approved the new EV policy with an ambitious goal of ensuring that 95% of all new vehicle registrations in the city are electric by 2027. Scheduled to come into effect from July 1, the policy also proposes investments of nearly ₹15,000 crore over the next four years to strengthen Delhi’s EV ecosystem.

Tata Motors Backs Pure-EV Strategy

Tata Motors Passenger Vehicles Ltd. described the policy as a significant step toward strengthening India’s EV ecosystem by providing long-term policy certainty.

“Delhi has once again demonstrated leadership in doing the right thing. By retaining ambitious electrification timelines for high-usage vehicle segments and focusing policy incentives on pure EVs, the Government has reinforced the principle that public support should benefit and accelerate technologies that deliver the maximum environmental benefit with zero emissions,” the company said.

The automaker added that the policy provides long-term direction for the industry, strengthens confidence in India’s EV ecosystem, and could serve as a benchmark for other states pursuing cleaner urban mobility.

Attractive Purchase and Scrappage Incentives

The policy offers purchase and scrappage-linked incentives across passenger vehicles, two-wheelers, three-wheelers, and light commercial vehicles.

Eligible buyers purchasing an electric passenger vehicle priced up to ₹30 lakh after scrapping an eligible older vehicle can receive incentives of up to ₹1 lakh. Electric cars will also continue to enjoy exemptions from road tax and registration charges.

Electric two-wheelers will be eligible for purchase incentives of up to ₹30,000 during the first year, with benefits gradually tapering in subsequent years. Buyers scrapping eligible older two-wheelers will receive additional incentives.

Electric three-wheelers will qualify for incentives of up to ₹50,000 in the first year, while scrappage benefits will also be available for replacing older auto-rickshaws. Eligible electric light commercial vehicles (e-LCVs) can receive incentives of up to ₹1 lakh.

Trev Mobility Highlights Shared Mobility Opportunity

Commenting on the new policy, Naveen Gupta, Founder and CEO of Trev Mobility, said Delhi’s latest EV framework marks an important milestone in India’s clean mobility journey.

“Delhi’s new EV policy marks an important step towards accelerating the transition from conventional fuel-based mobility to cleaner, more sustainable transportation. The focus on incentives for electric vehicles, fleet electrification, and reducing dependency on traditional fuels reflects the growing need for a structural shift in how cities move.”

Gupta noted that fleet electrification has the potential to significantly reduce urban emissions and improve air quality but stressed that successful adoption requires much more than simply replacing internal combustion engine vehicles with EVs.

According to him, charging infrastructure, efficient vehicle utilisation, driver adoption, financing support, and consumer confidence are equally important to building a sustainable shared mobility ecosystem.

“The next phase of EV mobility will require operators to think beyond just replacing an internal combustion engine vehicle with an electric one. It will be about creating reliable, convenient, and experience-led mobility solutions that make electric transport a natural choice for consumers.”

He added that while government policies provide the necessary push, meaningful transformation will come only through collaboration between industry players, technology providers, and mobility operators.

“India’s mobility future will not be defined only by how many EVs are sold, but by how effectively we integrate electric vehicles into daily life through shared and accessible mobility models.”

JSW MG Motor India Sees Policy as a Model for Other States

Anurag Mehrotra, Managing Director of JSW MG Motor India, described the policy as a positive step toward cleaner mobility and reduced dependence on imported crude oil.

“This is a step in the right direction towards improving air quality, promoting cost-effective travel, and protecting national interests by reducing crude oil dependency. The incentive to promote scrapping of older vehicles and replacing them with new EVs is also an important measure, as poorly maintained older vehicles are among the key contributors to vehicular pollution.”

He added that Delhi’s EV policy could serve as a pilot project for other states while offering valuable lessons for wider adoption across the country.

ASSOCHAM Welcomes ₹15,000 Crore Investment

Nirmal K. Minda, President of ASSOCHAM, said the proposed ₹15,000 crore investment demonstrates the scale of commitment required to accelerate Delhi’s clean mobility transition.

“The proposed investment towards strengthening the EV ecosystem, including charging infrastructure and incentives, reflects the scale of commitment required to accelerate the clean mobility transition.”

He said the policy has the potential to substantially reduce vehicular emissions while creating new economic opportunities and could serve as a model for other states.

TVS Motor Calls Policy Forward-Looking

TVS Motor Company Chairman Sudarshan Venu welcomed the policy, calling it proactive and future-focused.

“We welcome the Delhi government’s new EV policy, which is proactive and forward-looking. We are fully committed to developing sustainable mobility products and solutions to drive further EV adoption.”

Oben Electric Welcomes Two-Wheeler Focus

Madhumita Agrawal, Founder and CEO of Oben Electric, said Delhi’s EV Policy 2.0 addresses the key enablers needed to accelerate EV adoption at scale.

“Delhi’s EV Policy 2.0 is a progressive policy that addresses the key enablers required to accelerate EV adoption at scale. By combining a clear roadmap for the transition of the two-wheeler segment with continued consumer incentives, charging infrastructure expansion, and long-term ecosystem investments, the policy provides the clarity and confidence needed for both consumers and the industry.”

She highlighted that motorcycles represent India’s largest personal mobility segment and therefore offer the greatest opportunity for large-scale electrification.

Agrawal added that the policy places greater responsibility on manufacturers to deliver electric motorcycles that can match conventional motorcycles in terms of performance, reliability, safety, and ownership experience.

She also noted that a forward-looking policy framework will play a critical role in driving long-term investments, accelerating innovation, and strengthening India’s position as a global EV leader.

Ultraviolette Praises Charging Push

Narayan Subramaniam, CEO and Head of Design at Ultraviolette Automotive, welcomed the government’s commitment to an all-electric two-wheeler future.

“We welcome Delhi’s commitment to an all-electric two-wheeler future by 2028. The price-agnostic consumer support matters because it doesn’t penalise buyers who want more from their machine—whether in terms of range, technology, performance, or design. The push on charging infrastructure finally treats energy as part of the product rather than an afterthought. Clean technology is the way forward, and we at Ultraviolette are making that transition exciting.”

Focus Remains on Pure Electric Vehicles

The new policy continues to prioritise battery electric vehicles (BEVs), reaffirming Delhi’s commitment to zero-emission mobility by excluding strong hybrid vehicles from incentive schemes.

Beyond financial incentives, the policy proposes a significant expansion of public and private charging infrastructure, battery charging and swapping networks, and the electrification of public transport. These initiatives form part of the government’s proposed ₹15,000 crore investment programme aimed at strengthening the city’s EV ecosystem over the next four years.

The policy also outlines a phased roadmap for electrifying high-usage vehicle segments. From January 1, 2027, only electric auto-rickshaws are expected to be registered in Delhi, while registrations of new petrol, diesel, and CNG-powered two-wheelers are proposed to end from April 1, 2028.

The Delhi government has been working on the successor to its 2020 EV Policy for several months, with consultations focusing on charging infrastructure, fleet electrification, and a revised incentive framework.

With a clear long-term roadmap, robust financial incentives, and a continued focus on pure electric vehicles, the new Delhi EV Policy aims to position the national capital as one of India’s leading electric mobility hubs while serving as a model for other states pursuing cleaner and more sustainable transportation.