Big Shift to Electric Mobility in National Capital
The Delhi Cabinet has officially approved the landmark Delhi Electric Vehicle (EV) Policy 2026, setting up a massive structural shift in how the city commutes. Effective from July 1, 2026, through March 31, 2030, this new framework replaces the previous version with highly ambitious targets to curb critical winter air pollution. Chief Minister Rekha Gupta announced that the state government will invest approximately ₹15,000 crore over the next four years. The ultimate goal is to accelerate consumer transition, scale public infrastructure, and ensure that nearly 95% of all new vehicle registrations in the national capital are electric by 2027.
The 2028 Ban on New Petrol and CNG Two-Wheeler Registrations
The most impactful clause of the 2026 draft is the definitive timeline set for internal combustion engine (ICE) vehicles. Starting April 1, 2028, the Delhi government will completely discontinue the registration of new petrol and CNG-powered motorcycles and scooters. From this cutoff date onward, only pure electric two-wheelers will be permitted for new registration. While existing petrol bikes will remain perfectly legal to drive, the mandate effectively stops the influx of new fossil-fuel two-wheelers. This directly impacts a segment that currently contributes around 46% of total vehicular pollution alongside three-wheelers.
Tiered Purchase Incentives to Encourage Early Adoption
To ensure the transition does not hurt consumer pockets, the policy introduces a structured, declining purchase subsidy model. Buyers who switch to electric variants early will receive maximum financial benefits, which will be wired directly via Direct Benefit Transfer (DBT).
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Electric Two-Wheelers: Subsidies up to ₹30,000 in the first year, dropping to ₹20,000 in the second year, and ₹10,000 in the third year.
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Electric Three-Wheelers: Subsidies up to ₹50,000 in Year 1, decreasing gradually over the next two years.
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N1 Commercial Goods Carriers: Up to ₹1 lakh incentive in the first year to clean up logistics fleets.
Massive Scrappage Incentives up to ₹1 Lakh
To actively pull high-emission vehicles off Delhi roads, the government has allocated over ₹1,500 crore specifically for scrapping older vehicles. If a resident chooses to scrap a Delhi-registered BS-IV or older petrol/diesel car, they will receive a massive scrapping incentive of ₹1,000,000. This incentive can be applied toward purchasing a new electric car priced below ₹30 lakh (ex-factory) within six months of getting the certificate. Scrappage benefits for older two-wheelers are set at ₹10,000, and three-wheelers stand at ₹25,000.
Complete Road Tax and Registration Fee Waivers
The financial ease extends to operational taxes. The Delhi government has announced a 100% complete waiver on road tax and registration charges for eligible electric vehicles until 2030. For passenger cars, this full tax exemption applies strictly to battery-powered EVs priced up to ₹30 lakh (ex-showroom). Premium EVs above this price point will not qualify for the waiver. Furthermore, the government explicitly clarified that strong hybrid vehicles will only receive a 50% road tax exemption, keeping the policy focus firmly on zero-emission pure electric models.
Mandates for Commercial Fleets and School Transporters
Commercial logistics, corporate transport, and public departments face strict timelines under the new rules. From January 1, 2027, only electric L5 auto-rickshaws and N1 commercial goods carriers can be registered. Additionally, school transport operators must systematically electrify their school bus fleets—converting at least 10% of their buses to EVs by Year 2, 20% by Year 3, and 30% by March 2030. To support this rapid load, the city plans to deploy over 32,000 public EV charging points and extensive battery-swapping networks.
