Delhi New EV Policy 2026 Top 10 Points: 100% Free Road Tax, Rs. 1 Lakh Subsidy, Petrol Ban Plan & More

The Delhi government today unveiled the Draft Delhi EV Policy 2026-2030, to give a push toelectric vehicle adoption in Delhi and reduce pollution levels in the national capital.

It is one of the most ambitious electric vehicle policies in India with a massive outlay of Rs. 3,954.25 crore. The policy focuses on EV subsidies, charging infrastructure, scrappage incentives, and phasing out petrol and diesel vehicles. The policy will remain in force till March 31, 2030.

Currently, vehicular emissions contribute nearly 23% of Delhi's winter pollution, so this becomes a top priority for policymakers. Here is the Draft Delhi EV Policy explained in 10 points.

1. EV Purchase Incentives in Delhi

Under the Delhi EV Policy 2026, the government has introduced targeted incentives across vehicle segments to boost electric vehicle sales in Delhi. For electric two-wheelers, which make up around 67% of Delhi's vehicles, buyers can get incentives ranging from Rs. 10,000 per kWh (up to Rs. 30,000 in Year 1), gradually reducing to Rs. 3,300 per kWh (up to Rs. 10,000 by Year 3). This is expected to significantly boost EV scooter adoption in Delhi.

For electric three-wheelers like auto-rickshaws, incentives start at Rs. 50,000 in Year 1, dropping to Rs. 40,000 in Year 2 and Rs. 30,000 in Year 3, encouraging a shift to electric autos in Delhi.

For electric four-wheelers , incentives begin at Rs. 1,00,000 in Year 1, reducing to Rs. 75,000 and Rs. 50,000 in subsequent years. All benefits will be transferred directly to buyers through Direct Benefit Transfer.

2. Road Tax Exemption

One of the biggest highlights of the Delhi EV policy 2026 is the 100% road tax and registration fee exemption for electric cars priced up to Rs. 30 lakh (ex-showroom). This benefit will remain valid till March 31, 2030 so EVs will now be more affordable for middle-class buyers.

However, electric cars priced above Rs. 30 lakh will not qualify for these exemptions, signalling a focus on mass EV adoption rather than luxury electric vehicles.

Interestingly, the draft also proposes a 50% tax exemption for hybrid vehicles under Rs. 30 lakh, which has sparked debate among EV manufacturers over its impact on pure EV adoption in India.

3. Scrappage Policy: Extra Rs. 1 Lakh Incentive

To accelerate the shift to electric vehicles, the policy introduces a strong vehicle scrappage incentive in Delhi. If you scrap an old BS-IV or older vehicle and purchase an EV within six months, you can get an additional Rs. 1,00,000 incentive (for cars under Rs. 30 lakh).
Out of the total budget, Rs. 1,718 crore has been allocated for scrappage incentives, while Rs. 1,236.25 crore is reserved for EV purchase incentives.

4. Petrol & Diesel Vehicles to Be Phased Out

The draft policy clearly outlines a future where ICE vehicles (petrol and diesel) will gradually be phased out. Only electric two-wheelers will be allowed for new registrations from April 1, 2028

New registrations of electric three-wheelers will become mandatory from January 1, 2027 and Delivery companies and fleet aggregators must stop adding petrol/diesel two-wheelers, with a limited window until December 31, 2026

5. Public Transport Goes Electric

The Delhi government is also focusing heavily on electric public transport. All newly hired or leased government vehicles will be electric, and future buses added to the fleet will also be electric. Delhi aims to deploy 7,500 electric buses by 2026 and 11,000 by 2028, with over 3,500 e-buses already operational. Schools will also need to ensure that 30% of their transport fleet is electric by 2030.

6.Charging Infrastructure Expansion

To support rising EV demand, the policy is expecting to expand EV charging stations in Delhi from around 9,000 to 36,000 by 2030. A dedicated Rs. 1,000 crore fund has been allocated for this purpose.

7. Focus on Inclusive Mobility

A unique feature of the policy is its push for inclusive employment through special permits like the 'Pink e-permit' for women and 'Rainbow permit' for transgender drivers.

8. Battery Recycling & Retrofitting Plans

The policy is also quite sustainable as it proposes a structured EV battery recycling system. It also includes incentives of up to Rs. 50,000 for retrofitting old cars into electric vehicles.

9. Fully Digital EV Ecosystem

All processes under the Delhi EV Policy 2026 including applications, approvals, subsidies, and grievance redressal will be fully digital,

10. Governance & EV Fund

An EV Apex Committee, chaired by the Transport Minister, will oversee the implementation of the policy. Additionally, an EV Fund will be created, supported by government allocations, environmental charges, and central schemes to ensure long-term sustainability of the program.

How to Submit Feedback on Delhi EV Policy 2026

The draft policy is currently open for public feedback until May 10, 2026. Citizens can share suggestions via email at [email protected] or by post to the Transport Department in Delhi.