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Delhi Approves EV Policy 2026: Tax-Free Electric Cars, Subsidies Up to ₹1 Lakh to Boost Green Mobility

Delhi Approves EV Policy 2026: Tax-Free Electric Cars, Subsidies Up to ₹1 Lakh to Boost Green Mobility

The Delhi Cabinet, chaired by Chief Minister Rekha Gupta, has approved the ambitious Delhi EV Policy 2026, paving the way for a major transformation in the national capital's transportation sector. The policy aims to accelerate the adoption of electric vehicles (EVs), curb air pollution, and establish Delhi as India's leading electric mobility hub.

Under the new policy, all electric cars with an ex-showroom price of up to ₹30 lakh registered in Delhi will be exempt from road tax and registration fees. In addition, the government will provide a scrapping incentive of ₹1 lakh to owners of BS-IV or older four-wheelers and below-standard vehicles who scrap their existing vehicles and purchase new electric vehicles.

The policy also offers attractive subsidies for electric two-wheelers and three-wheelers. Buyers of electric two-wheelers will receive a subsidy of ₹30,000, while purchasers of electric three-wheelers will get ₹50,000 during the first year of the policy. Incentives for electric three-wheelers will gradually reduce over the following years, with buyers eligible for ₹40,000 in the second year and ₹30,000 in the third year.

The Delhi EV Policy 2026 is proposed to come into effect from July 1, 2026, after receiving approval from Delhi Lieutenant Governor Taranjit Singh Sandhu. The policy will remain in force until March 31, 2030.

Vision to Make Delhi India's EV Capital

Chief Minister Rekha Gupta said the primary objective of the new policy is to make Delhi a pollution-free city and a clean transportation capital. She emphasized that encouraging people to shift from petrol and diesel vehicles to electric vehicles would significantly reduce air pollution while lowering fuel expenses for residents.

The government has earmarked an investment of approximately ₹15,000 crore over the next four years to promote electric mobility, strengthen EV infrastructure, and reduce vehicular emissions across the capital.

Shift Towards Fully Electric Public Transport

The policy introduces a phased transition toward electric mobility in the public transport sector. From January 1, 2027, only electric autorickshaws will be registered in Delhi. Additionally, registration of new petrol and CNG-powered two-wheelers will be gradually discontinued, with only electric two-wheelers being registered from April 1, 2028.

To encourage cleaner commercial transport, buyers of N1 category electric trucks will also receive a purchase incentive of up to ₹1 lakh.

Charging Infrastructure and Vehicle Scrapping Facilities

Apart from financial incentives, the government plans to significantly expand charging infrastructure and establish more vehicle scrapping facilities to support the city's transition to electric mobility. These measures are expected to improve convenience for EV users and accelerate the adoption of zero-emission vehicles.

Officials believe the policy will not only reduce pollution levels but also generate employment opportunities in EV manufacturing, charging infrastructure, and vehicle recycling.

Government Push for Digital Governance

Alongside the approval of the EV Policy, the Delhi government highlighted the success of its e-Office system, stating that it has made government functioning faster, more transparent, and fully digital. According to the government, 235 departments have already been integrated into the platform, streamlining administrative processes and improving governance.

With generous subsidies, tax exemptions, scrapping incentives, and a clear roadmap for phasing out conventional vehicles, the Delhi EV Policy 2026 represents one of the most comprehensive electric mobility initiatives in the country. If implemented successfully, it is expected to play a significant role in reducing pollution and positioning Delhi as a national leader in sustainable urban transportation.

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