The Delhi administration has officially ratified its revised EV Policy 2.0 at the end of June 2026. This comprehensive strategic document is set to take effect from July 1, 2026, and will remain in force until March 31, 2030, marking a critical four-year window for the capital's ambitious environmental transformation.
The financial scale of this initiative is significant, with the government allocating 150 billion rupees (approximately $1.6 billion) to facilitate the transition to electric mobility. The overarching objective is daring: by 2027, the city aims for 95 percent of all new vehicle registrations to be electric, signaling a pivot from optional incentives to mandatory compliance.
A rigorous timeline for phasing out combustion engines has been established. Starting in January 2027, Delhi will only permit the registration of pure electric three-wheeled rickshaws. By April 2028, these restrictions will extend to two-wheelers, meaning only electric scooters and motorcycles can be registered. To encourage the removal of older vehicles, owners of BS-IV standard cars and below will be eligible for a scrappage subsidy of up to 100,000 rupees when upgrading to an EV.
Buyer incentives remain a cornerstone of the policy, though they are structured to encourage early adoption. During the first year, electric two-wheelers and three-wheelers will receive subsidies of 30,000 and 50,000 rupees, respectively, with these amounts tapering off in the subsequent years. Furthermore, electric cars priced under 3 million rupees will enjoy a full waiver of road taxes and registration fees through 2030. Notably, hybrid vehicles, including strong hybrids, have been entirely excluded from the support framework.
The decision to bypass hybrids followed extensive consultations with automotive manufacturers and environmental specialists. Industry leaders emphasized that providing incentives for hybrids could dilute the focus on achieving a total transition to zero-emission vehicles and divert crucial investment away from pure electric infrastructure. However, analysts point to a significant risk of regulatory arbitrage, as neighboring states like Haryana and Uttar Pradesh have not implemented similar bans on internal combustion engines, potentially allowing residents to register vehicles there and drive them back into Delhi.
To bolster the policy's effectiveness, the Commission for Air Quality Management is exploring additional measures, such as the creation of EV-exclusive zones and differentiated road pricing. These efforts aim to accelerate the environmental impact of the new regulations. Despite this momentum, industry experts warn of looming challenges, including the displacement of gas-powered rickshaw drivers and a widening gap in charging infrastructure. As of April 2026, the city had roughly 4,800 charging points, far short of the 18,000-point target set for the end of 2026, while supply chain reliance on Chinese components remains a concern.
The predecessor policy launched in 2020 had already seen the share of electric vehicles grow from 2.6 percent in 2025 to 4.25 percent by early 2026. However, the 2.0 iteration represents a radical shift toward strict mandates and prohibitions rather than voluntary participation. This move positions Delhi as one of the most aggressive regions globally in regulating electro-mobility, drawing comparisons to the rigorous climate policies seen in California and the European Union.
For the average citizen, this transition promises more affordable electric scooters and rickshaws, but it also necessitates the rapid expansion of the power grid and charging network. The government's roadmap includes the installation of over 30,000 charging points across the metropolitan area. A major hurdle remains the motorcycle segment, which currently accounts for only 9 to 10 percent of the national electrified market, as competitive pricing for mass-market electric alternatives remains elusive.
In the long run, the policy is designed to drastically improve air quality, given that two-wheelers are responsible for approximately 67 percent of transport-related pollution in the city. The ultimate success of Delhi's 2.0 plan will hinge on three pivotal factors: seamless coordination with surrounding states, the stability of global battery supply chains, and the willingness of the public to move away from the long-standing habit of internal combustion engine usage.
