Delhi EV policy approved: Road tax exempted for cars over ₹30 lakh; ₹50,000 subsidies for EV buyers

The Delhi Cabinet on Monday approved the new Electric Vehicle Policy, with electric cars priced at ₹30 lakh or less to get a 100 per cent exemption on road tax and registration fees, and subsidies of up to ₹50,000 for electric vehicle buyers. 

Chief Minister Rekha Gupta said the policy is likely to be implemented from July 1 and will be sent to the Lieutenant Governor for approval.

Gupta said the government plans to invest around ₹15,000 crore under the policy over the next four years. The EV Policy 2.0 is part of Delhi’s push to strengthen electric mobility adoption, with the government targeting 95 per cent of all new vehicle registrations in the national capital to be electric by 2027. 

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She said the policy was long overdue and added, "The policy that Delhi truly needed for years, which could have helped resolve many legacy problems of the city, is now finally going to be implemented. We are planning to implement it from July 1."

Under the policy, buyers of electric two-wheelers will get a subsidy of ₹30,000 in the first year, ₹20,000 in the second year and ₹10,000 in the third year. Buyers of electric three-wheelers will be eligible for incentives of ₹50,000, ₹40,000 and ₹30,000 in the first, second and third years respectively, with officials also saying first-year subsidies will be available for electric two-wheelers and three-wheelers. Buyers of N1 category electric trucks will receive a purchase incentive of up to ₹1 lakh.

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The policy also provides a scrapping incentive of ₹1 lakh for owners of BS-IV four-wheelers who scrap their vehicles before September 30, 2026. Officials said the incentive is aimed at encouraging owners of older and more polluting vehicles to switch to electric vehicles.

As part of the policy, only electric autorickshaws will be registered in Delhi from January 1, 2027. Registration of new petrol and CNG two-wheelers will be phased out, with only electric two-wheelers to be registered from April 1, 2028. 

Gupta said the policy lays special emphasis on the transport sector and provides a roadmap for a phased transition from conventional fuel-powered vehicles to electric vehicles.

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Delhi’s earlier EV policy, launched in August 2020, had been extended several times, and the government was earlier expected to unveil EV Policy 2.0 during the budget session of the Delhi Assembly in March.