Delhi's Cabinet has officially approved the ₹15,000 crore EV policy with implementation scheduled from July 1, 2026, as announced by Chief Minister Rekha Gupta. The policy represents a significant push toward greener transportation in the national capital, with the government committing ₹15,000 crore investment over the next four years to promote electric mobility and reduce vehicular pollution. The policy forms a key part of Delhi's strategy to strengthen its leadership in electric mobility adoption, with the BJP government setting a target of achieving 95 per cent electric share in new vehicle registrations by 2027. The total package is worth ₹150 billion or about $1.6 billion, marking one of the most ambitious EV policy commitments globally.
While Delhi's decision to ban petrol two-wheelers from April 2028 represents a landmark policy shift, the scale of the transition becomes clearer when examining the capital's current vehicle fleet. Delhi has a total of 16,234,511 registered vehicles, with two-wheelers making up the largest share at 1,04,99,474, followed by 6,20,718 registered three-wheelers, according to VAHAN portal data. ICE vehicles dominate the fleet at 12,831,671 registrations, while electric vehicles account for just over 508,000 registrations, representing slightly over 3 per cent of the total fleet. However, new registration data reveals that electric vehicles have gained significant traction, accounting for 11.7 per cent of total new registrations in 2026, with 49,619 EV registrations compared to 3,62,803 ICE vehicle registrations. Despite being among India's most EV-friendly markets, electric two-wheelers still accounted for only 7.25% of total two-wheeler registrations in FY26, with 41,243 electric scooters and motorcycles registered during the year.
The new policy introduces more generous subsidy structures compared to previous versions. Electric two-wheeler buyers will receive ₹30,000 subsidy in the first year, ₹20,000 in the second year, and ₹10,000 in the third year. Electric three-wheeler purchasers are eligible for ₹50,000, ₹40,000, and ₹30,000 incentives respectively in the first three years. Additionally, N1 category electric trucks will receive purchase incentives of up to ₹1 lakh. Owners of BS-IV four-wheelers or below standard who scrap their vehicles and switch to electric vehicles will get a ₹1 lakh scrapping incentive. A dedicated online portal will be developed to enable applicants to apply for EV-related incentives. Electric cars and utility vehicles priced under ₹3 million are not subject to road tax or registration fees, providing additional financial incentives for consumers.
The policy introduces a phased registration approach with immediate impact on specific vehicle categories. Only electric autorickshaws will be registered in Delhi from January 1, 2027, marking the beginning of the transition. Registration of new petrol and CNG two-wheelers will be phased out, with only electric two-wheelers to be registered from April 1, 2028. The policy tightens further from April 1, 2028, when only electric two-wheelers will be allowed for fresh registration, effectively phasing out petrol and CNG variants in these segments. This timeline represents a significant acceleration from the earlier policy that was launched in August 2020 and had been extended several times. The ban applies to small trucks by January 1, 2027, and two-wheelers by April 1, 2028, giving manufacturers less than two years to retool production. According to The Economic Times, the policy may also offer a 50% road tax waiver on hybrid vehicles up to ₹30 lakh, aiming to accelerate electric mobility adoption despite some internal debate.
Automakers have welcomed the policy, with the industry investing heavily in capacity expansion to meet rising EV demand. India registered 1.4 million electric two-wheelers in FY26, up 22% over the previous year, aided by new product launches, wider dealership networks, improving charging infrastructure and rising ownership costs of petrol-powered scooters and motorcycles. The country's largest electric two-wheeler maker, TVS Motor Company, is expanding EV production capacity to 50,000 units a month from around 40,000 units currently. Bajaj Auto, the second-largest player in the segment, has increased production capacity to 50,000 units a month following strong demand for its Chetak electric scooter and is scouting for a new manufacturing facility. Hero MotoCorp is nearly doubling annual production capacity for its Vida electric scooters to 280,000 units in FY27, from 148,000 units in FY26. Among two-wheelers, Honda Motorcycle & Scooter India, TVS Motor, and Hero MotoCorp account for the largest number of registered vehicles in Delhi, while in the electric segment, Ola Electric, Ather Energy, and Hero Electric have emerged as leading players. Industry observers suggest existing expansion plans should comfortably absorb Delhi's incremental demand, particularly because the capital represents a small share of the national market.
