The Delhi Cabinet has approved the capital’s new Electric Vehicle (EV) Policy, committing an investment of around ₹15,000 crore over the next four years to accelerate the city’s transition towards electric mobility. The policy, which comes into effect from July 1, aims to strengthen Delhi’s EV ecosystem through expanded charging infrastructure, public transport electrification, consumer incentives, and long-term ecosystem development.
Announcing the decision following the Cabinet meeting, Chief Minister Rekha Gupta said the policy is designed to position Delhi as one of India’s leading electric mobility hubs while significantly increasing EV adoption across vehicle segments.
The government has set an ambitious target of ensuring that electric vehicles account for 95% of all new vehicle registrations in the national capital by 2027.
₹15,000 Crore Investment to Strengthen EV Ecosystem
A key highlight of the new policy is the proposed investment of approximately ₹15,000 crore over the next four years. The investment will be directed towards expanding public and private charging infrastructure, developing battery charging and swapping networks, electrifying public transport, and strengthening the overall EV ecosystem.
While the government has announced the overall investment commitment, detailed allocations across various programmes—including charging infrastructure, incentives, and public transport—are expected to be specified in the official notification.
The Delhi government is also expected to release detailed implementation guidelines outlining eligibility criteria, timelines, and operational frameworks for the various incentives and initiatives under the policy.
Purchase and Scrappage Incentives Across Vehicle Segments
The new EV Policy introduces purchase and scrappage-linked incentives across passenger vehicles, two-wheelers, three-wheelers, and light commercial vehicles to encourage faster adoption of electric mobility.
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, subject to the policy’s conditions. Electric passenger vehicles will also continue to enjoy exemptions from road tax and registration charges, lowering the overall ownership cost.
Electric two-wheelers will be eligible for purchase incentives of up to ₹30,000 during the first year of the policy, with the incentive gradually tapering in subsequent years. Buyers replacing eligible older two-wheelers with electric models will also qualify for additional scrappage incentives.
Electric three-wheelers will receive purchase incentives of up to ₹50,000 during the first year, along with scrappage benefits for replacing eligible older auto-rickshaws. Eligible electric light commercial vehicles (e-LCVs) can receive incentives of up to ₹1 lakh.
Focus on Infrastructure and Long-Term Growth
Beyond consumer incentives, the policy places strong emphasis on developing the infrastructure needed to support large-scale EV adoption.
The proposed investment programme includes expanding charging infrastructure, establishing battery charging and swapping facilities, electrifying public transport, and creating a robust ecosystem capable of supporting sustained growth in electric mobility across Delhi.
The government is expected to issue a comprehensive notification detailing the implementation roadmap, infrastructure rollout plans, and timelines for various initiatives.
Phased Roadmap for Cleaner Mobility
The policy also outlines a phased transition towards cleaner transportation across high-usage vehicle segments.
Under the proposed roadmap, only electric auto-rickshaws are expected to be registered in Delhi from January 1, 2027. In addition, new registrations of petrol, diesel, and CNG-powered two-wheelers are proposed to end from April 1, 2028.
The revised framework continues to prioritise battery electric vehicles (BEVs) and does not extend financial incentives to strong hybrid vehicles, reinforcing the government’s commitment to zero-emission mobility.
Building on Delhi’s 2020 EV Policy
The newly approved policy replaces Delhi’s 2020 EV Policy, one of India’s earliest state-level electric vehicle policies. The earlier framework played a key role in boosting EV adoption by offering purchase incentives, exemptions on road tax and registration fees, and support for charging infrastructure, helping position Delhi among the country’s leading electric mobility markets.
The Delhi government had been working on the revised policy for several months, with discussions centred on expanding charging infrastructure, accelerating fleet electrification, strengthening the broader EV ecosystem, and refining the incentive framework. The 2020 policy had been extended multiple times while the new framework was being finalised before receiving Cabinet approval.
Industry Awaits Detailed Notification
With Cabinet approval now in place, automakers, charging infrastructure providers, fleet operators, and component suppliers are expected to closely monitor the government’s detailed notification, which will provide clarity on implementation timelines, eligibility criteria, incentive structures, and programme-specific allocations.
Combining substantial infrastructure investment, attractive consumer incentives, and a clear regulatory roadmap, Delhi’s new EV Policy represents one of India’s most ambitious state-level electric mobility initiatives and is expected to play a significant role in accelerating the capital’s transition towards cleaner and more sustainable transportation.
