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Delhi EV Policy 2026 proposes purchase incentives of up to Rs. 1 lakh, complete tax exemption, charging expansion and a phased shift away from petrol, diesel and CNG vehicles
Delhi has outlined one of India’s aggressive electric mobility plans through its new EV Policy 2026. The proposal aims for electric vehicles to account for 95 per cent of all new registrations as early as next year and also lays down timelines that would gradually end new registrations of several internal combustion engine vehicle categories over the next two years.
Among the biggest regulatory changes is the proposal to discontinue new CNG auto rickshaw registrations from January 2027. Existing diesel and CNG auto permits will also be phased out in stages. The policy goes a step further from April 2028 by proposing that new registrations of petrol, diesel and CNG-powered two-wheelers should stop altogether – leaving electric models as the only option for new registrations in the segment.
Financial incentives continue to play a key part in the proposal. Zero-emission cars will qualify for an incentive of Rs. 10,000 per kWh – subject to a maximum benefit of Rs. 1 lakh. Electric two-wheelers, on the other hand, will receive Rs. 5,000 per kWh up to Rs. 30,000 while electric three-wheelers will be eligible for Rs. 10,000 per kWh with a ceiling of Rs. 45,000.
Vehicle owners replacing older internal combustion engine models with electric vehicles have also been included in the proposal. The scrappage package offers incentives reaching Rs. 1 lakh based on the vehicle category – reducing the overall purchase cost for eligible customers switching to electric cars and it could prove to be attractive for many.
Apart from purchase incentives, the Delhi government has proposed a complete waiver of road tax and registration charges for electric vehicles. Removing both charges substantially lowers the on-road price and adds another financial benefit over conventional petrol, diesel and CNG-powered vehicles as part of promoting the use of EVs to bring down alarming pollution levels.
Delhi intends to expand its public charging network as well and develop additional fast charging corridors and battery-swapping stations to stimulate buyers while encouraging charging facilities across residential and commercial developments to accommodate the expected rise in electric vehicle numbers to form an entire ecosystem.
Government departments and public agencies will progressively induct electric vehicles into their fleets while battery collection, recycling and end-of-life management have also been incorporated to address the entire ownership cycle instead of vehicle sales alone. Delhi estimates the policy could attract investments of around Rs. 15,000 crore across the electric mobility ecosystem.
Charging infrastructure, vehicle manufacturing, battery services, recycling facilities and associated industries are all expected to benefit if the proposal moves ahead as planned. If implemented in its current form, the Delhi EV Policy 2026 could reshape one of India’s largest automotive markets over the next few years.
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