Delhi EV Policy 2026 Comes Into Force: Tax Benefits, Subsidies, and Key Rules Explained

Delhi has officially rolled out its new Electric Vehicle (EV) Policy 2026, marking one of India’s most ambitious clean mobility initiatives. Effective from July 1, the policy is designed to accelerate electric vehicle adoption, reduce air pollution, expand charging infrastructure, and attract nearly INR 15,000 crore in investments over the next four years.

Chief Minister Rekha Gupta said the policy aims to transform Delhi into one of the country’s leading electric mobility hubs while significantly lowering transport-related emissions by March 31, 2030.

The policy introduces tax exemptions, purchase subsidies, vehicle scrappage incentives, and phased restrictions on conventional vehicles. However, it also excludes hybrid vehicles and premium EVs from several incentives.

Major tax relief for electric car buyers

One of the biggest highlights of the policy is the complete waiver of road tax and registration charges for electric cars priced up to ₹30 lakh (ex-showroom). The exemption applies only to vehicles registered during the policy period and under conditions specified by the Delhi government.

Luxury electric vehicles priced above ₹30 lakh will continue to attract normal registration and road tax charges.

Subsidies for electric two-wheelers

The government has introduced a phased subsidy programme for electric scooters and motorcycles.

During the first year, buyers will receive INR 10,000 per kWh, capped at INR 30,000. The incentive reduces to INR 20,000 in the second year and INR 10,000 in the third year.

The subsidy applies only to electric two-wheelers with an ex-factory price of INR 2.25 lakh or less, making affordable EVs more attractive for daily commuters.

Support for electric autos and commercial vehicles

The policy also focuses heavily on public transport and commercial mobility.

Electric auto-rickshaw buyers can receive incentives of:

• INR 50,000 in Year 1
• INR 40,000 in Year 2
• INR 30,000 in Year 3

Owners replacing existing CNG auto-rickshaws operating under Delhi permits will also qualify.

Meanwhile, buyers of N1-category electric goods vehicles (light commercial e-trucks) can receive incentives of up to INR 1 lakh during the first year.

Vehicle scrappage incentives

To encourage the removal of older polluting vehicles, the government has allocated significant funding for scrappage benefits.

Owners scrapping BS-IV or older cars and purchasing a new electric vehicle worth up to INR 30 lakh can claim an INR 1 lakh incentive, provided the new vehicle is purchased within six months of receiving an authorised scrappage certificate.

Petrol vehicle registrations to end in phases

The Delhi government has also announced clear timelines for shifting away from fossil-fuel vehicles.

Key milestones include:

• January 1, 2027: Only electric auto-rickshaws will be eligible for new registrations.
• April 1, 2028: Registration of new petrol and CNG two-wheelers will stop, allowing only electric two-wheelers.

Officials believe these measures will significantly reduce transport emissions, especially since two-wheelers account for a large share of Delhi’s vehicle population.

Charging network set for expansion

Recognising that charging infrastructure remains crucial for EV adoption, the policy proposes a major expansion of public charging stations and battery-swapping facilities.

Delhi Transco Limited will serve as the nodal agency to oversee implementation, while a new single-window clearance mechanism aims to simplify approvals for charging station operators.

Vehicle manufacturers operating in Delhi will also be expected to provide public charging facilities at dealerships.

Institutions and fleets must adopt EVs

The policy extends beyond private vehicle owners.

Schools will gradually increase electric buses until 30% of their fleets are electric by 2030.

Fleet operators, delivery companies and government departments will also be required to transition towards electric vehicles, with all newly leased or purchased government vehicles expected to be electric unless exempted.

Additionally, vehicles purchased using government subsidies cannot be transferred outside Delhi for the first three years.

Hemant Kabra, Founder & Managing Director, BGauss, said: By combining targeted financial incentives, tax exemptions, and a clear roadmap for the gradual transition away from conventional vehicles, the policy creates the right conditions to strengthen consumer confidence while making EV ownership more accessible.”

What the policy leaves out

Despite its broad scope, several proposals did not make the final policy.

The government has excluded hybrid vehicles from all incentives. Earlier draft proposals had suggested partial road tax and registration exemptions for strong hybrid cars, but the final version restricts benefits solely to fully electric vehicles.

Premium electric cars priced above ₹30 lakh also receive no tax relief.

The policy further lacks a dedicated roadmap for India’s growing used EV market, offering no framework for battery health certification or resale support.

Delhi pushes towards an electric future

Delhi has emerged as one of India’s fastest-growing EV markets, and the new policy reflects a shift from encouraging early adoption to building a complete electric mobility ecosystem.

Industry leaders have welcomed the initiative, saying lower ownership costs, stronger charging infrastructure and clearer timelines for electrification could accelerate mainstream EV adoption across the capital.

With ambitious targets stretching to 2030, Delhi’s latest EV policy is expected to influence similar clean mobility strategies in other Indian states.