TL;DR
Delhi's new EV Policy 2.0 introduces 'scrappage first' incentives for private vehicles, expands the electric bus fleet, and mandates widespread charging infrastructure development, while retaining tax exemptions for affordable EVs.
The Delhi government has unveiled its updated Electric Vehicle (EV) Policy 2.0, allocating ₹200 crore to promote sustainable mobility within the capital. A key feature of the new policy is a 'scrappage first' incentive model, directly linking subsidies to the decommissioning of older, polluting BS-IV or earlier petrol or diesel vehicles. Private electric cars under ₹15 lakh are eligible for up to ₹1 lakh in incentives for the first 100,000 applicants, while electric two-wheelers receive a flat ₹10,000 subsidy. Additionally, L5M category electric three-wheelers will benefit from ₹25,000.
Beyond purchase incentives, the policy maintains 100% exemption from road tax and registration fees for EVs until March 31, 2030, though a 'luxury loophole' has been addressed, with the waiver now applicable only to cars with an ex-showroom price up to ₹30 lakh. The Delhi Budget 2026 has significantly boosted public transport electrification, earmarking ₹8,374 crore for the transport department. Plans include integrating 6,130 new electric buses in the coming financial year, aiming for a total fleet of 12,000 electric buses by 2029.
A critical component of the policy is the ambitious expansion of EV charging infrastructure. All 400-plus vehicle dealerships in Delhi are mandated to install at least one public charging station, contributing to a city-wide target of 18,000 charging points by the end of 2026. Furthermore, a dedicated battery recycling program has been established under the Delhi Pollution Control Committee to manage the projected increase in lithium-ion waste and promote second-life applications.
