Bought an EV in Delhi? You may not be able to sell it anytime soon
Delhi’s proposed EV Policy 2.0 could bring major changes for electric vehicle buyers, including a five-year restriction on selling subsidised vehicles. The draft policy also outlines revised subsidy rules, tax benefits, and incentives aimed at strengthening long-term EV adoption in the national capital.

- May 22, 2026,
- Updated May 22, 2026 2:11 PM IST
The Delhi government is likely to introduce its new Electric Vehicle (EV) Policy 2.0 with several revised provisions, including restrictions on the resale of subsidised electric vehicles. The proposed policy, drafted after incorporating public feedback, is expected to be presented for Cabinet approval in an upcoming meeting chaired by Chief Minister Rekha Gupta on May 26.
Five-year restriction on sale
According to the proposal, as reported by news reports, buyers who avail government subsidies while purchasing an electric vehicle may not be allowed to sell or transfer the vehicle for five years. The government has suggested withholding No Objection Certificates (NOCs) for the transfer or re-registration of such subsidised EVs, including transfers to other states. However, the proposal is yet to receive final approval from the Cabinet.
Final policy draft
The Delhi Transport Department had released the draft EV Policy 2.0 in April and sought public suggestions until May 10. Officials said more than 700 responses were received. Following consultations, the government prepared a revised final draft with minor modifications after reviewing public feedback.
MUST READ: No more EV charging hassle? Govt plans UPI-like system for all stations
Subsidy eligibility and claims
The proposed policy also outlines a structured subsidy framework. Buyers seeking EV subsidies will have to apply within 30 days of vehicle registration. The subsidy amount will be transferred directly to beneficiaries’ bank accounts through Direct Benefit Transfer (DBT) within a maximum of 60 days.
Only Delhi residents purchasing government-approved EV models will be eligible for incentives. Vehicles not included in the approved list will not qualify for subsidy benefits.
MUST READ: How XEV 9S became Mahindra & Mahindra’s top-selling EV
Proposed subsidy structure
The proposal includes financial incentives across categories. E-bikes could receive subsidies of up to ₹30,000 in the first year, while electric autos may receive up to ₹50,000. Electric four-wheelers may get a maximum subsidy of ₹1 lakh during the first year. The subsidy amounts are proposed to reduce gradually in the following years.
Tax relief, hybrid benefits
The policy also proposes road tax and registration charge exemptions for electric vehicles priced up to ₹30 lakh, while strong hybrid vehicles may receive a 50% concession. Additional incentives ranging from ₹10,000 to ₹1 lakh are also proposed for buyers scrapping old BS-4 vehicles and purchasing EVs.
MUST READ: ‘13-16% cost disadvantage’: EV start-ups Ather Energy, Euler Motors slam Auto PLI scheme
How EV incentives work beyond Delhi
The proposed measures come at a time when subsidies continue to remain a key factor influencing EV adoption across India. Government incentives, both at the central and state levels, have helped lower ownership costs through direct purchase benefits, tax reductions and registration-related exemptions.
Under the Centre’s PM E-DRIVE scheme, support for electric mobility and charging infrastructure continues, with demand incentives for selected vehicle categories expected to remain available until March 31, 2026. EVs and charging infrastructure also attract a lower GST rate of 5%, helping reduce overall purchase costs.
However, most buyer-facing benefits vary across states. Several states including Maharashtra, Gujarat, Telangana and Uttar Pradesh offer additional incentives depending on vehicle type, battery capacity and eligibility conditions.
MUST READ: Mercedes-Benz India ups its EV game; CLA BEV gets 400 bookings before launch
FAQs
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What is Delhi EV Policy 2.0 and when is it expected to be approved?
Delhi EV Policy 2.0 is the proposed new electric vehicle policy of the Delhi government, with revised rules on subsidies, resale and tax benefits. It is expected to be placed for Cabinet approval in a meeting chaired by Chief Minister Rekha Gupta on May 26.
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What is the proposed five-year restriction on selling subsidised electric vehicles in Delhi?
Under the proposal, buyers who take government subsidy for an electric vehicle may not be allowed to sell or transfer that vehicle for five years. The government may withhold the No Objection Certificate for transfer, re-registration or even movement to another state during this period.
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Who will be eligible for EV subsidy under Delhi EV Policy 2.0?
Only Delhi residents buying government-approved electric vehicle models are likely to be eligible for subsidy. Buyers will need to apply within 30 days of vehicle registration, and the amount is proposed to be sent directly to their bank account through Direct Benefit Transfer within 60 days.
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What subsidy benefits are proposed for electric vehicles under Delhi EV Policy 2.0?
The draft policy proposes up to ₹30,000 for e-bikes, up to ₹50,000 for electric autos and up to ₹1 lakh for electric four-wheelers in the first year. These subsidy amounts are proposed to reduce gradually in the following years.
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What other EV incentives and tax benefits are available in Delhi and across India?
The proposed Delhi policy offers road tax and registration charge exemption for EVs priced up to ₹30 lakh, while strong hybrids may get a 50 percent concession. Buyers scrapping old BS-4 vehicles and shifting to EVs may also get extra incentives. Across India, EV buyers benefit from lower GST of 5 percent and support under the Centre’s PM E-DRIVE scheme, along with additional state-level incentives in places such as Maharashtra, Gujarat, Telangana and Uttar Pradesh.
The Delhi government is likely to introduce its new Electric Vehicle (EV) Policy 2.0 with several revised provisions, including restrictions on the resale of subsidised electric vehicles. The proposed policy, drafted after incorporating public feedback, is expected to be presented for Cabinet approval in an upcoming meeting chaired by Chief Minister Rekha Gupta on May 26.
Five-year restriction on sale
According to the proposal, as reported by news reports, buyers who avail government subsidies while purchasing an electric vehicle may not be allowed to sell or transfer the vehicle for five years. The government has suggested withholding No Objection Certificates (NOCs) for the transfer or re-registration of such subsidised EVs, including transfers to other states. However, the proposal is yet to receive final approval from the Cabinet.
Final policy draft
The Delhi Transport Department had released the draft EV Policy 2.0 in April and sought public suggestions until May 10. Officials said more than 700 responses were received. Following consultations, the government prepared a revised final draft with minor modifications after reviewing public feedback.
MUST READ: No more EV charging hassle? Govt plans UPI-like system for all stations
Subsidy eligibility and claims
The proposed policy also outlines a structured subsidy framework. Buyers seeking EV subsidies will have to apply within 30 days of vehicle registration. The subsidy amount will be transferred directly to beneficiaries’ bank accounts through Direct Benefit Transfer (DBT) within a maximum of 60 days.
Only Delhi residents purchasing government-approved EV models will be eligible for incentives. Vehicles not included in the approved list will not qualify for subsidy benefits.
MUST READ: How XEV 9S became Mahindra & Mahindra’s top-selling EV
Proposed subsidy structure
The proposal includes financial incentives across categories. E-bikes could receive subsidies of up to ₹30,000 in the first year, while electric autos may receive up to ₹50,000. Electric four-wheelers may get a maximum subsidy of ₹1 lakh during the first year. The subsidy amounts are proposed to reduce gradually in the following years.
Tax relief, hybrid benefits
The policy also proposes road tax and registration charge exemptions for electric vehicles priced up to ₹30 lakh, while strong hybrid vehicles may receive a 50% concession. Additional incentives ranging from ₹10,000 to ₹1 lakh are also proposed for buyers scrapping old BS-4 vehicles and purchasing EVs.
MUST READ: ‘13-16% cost disadvantage’: EV start-ups Ather Energy, Euler Motors slam Auto PLI scheme
How EV incentives work beyond Delhi
The proposed measures come at a time when subsidies continue to remain a key factor influencing EV adoption across India. Government incentives, both at the central and state levels, have helped lower ownership costs through direct purchase benefits, tax reductions and registration-related exemptions.
Under the Centre’s PM E-DRIVE scheme, support for electric mobility and charging infrastructure continues, with demand incentives for selected vehicle categories expected to remain available until March 31, 2026. EVs and charging infrastructure also attract a lower GST rate of 5%, helping reduce overall purchase costs.
However, most buyer-facing benefits vary across states. Several states including Maharashtra, Gujarat, Telangana and Uttar Pradesh offer additional incentives depending on vehicle type, battery capacity and eligibility conditions.
MUST READ: Mercedes-Benz India ups its EV game; CLA BEV gets 400 bookings before launch
