Delhi EV Policy: 5 wins for buyers but why are hybrids missing out
Buying an electric vehicle in Delhi is set to become significantly cheaper from next month, with the Delhi government unveiling a new Electric Vehicle (EV) Policy that combines tax exemptions, purchase subsidies and scrappage incentives to encourage faster adoption of clean mobility. While the policy is primarily aimed at reducing vehicular pollution, it also lowers the upfront cost of owning an EV across multiple vehicle categories. Approved by the Delhi Cabinet, the policy will come into force from July 1 after receiving the Lieutenant Governor’s approval. It will remain in effect until March 31, 2030, and is backed by an investment of more than Rs 7,000 crore over the next four years. How buyers will benefit The biggest financial relief is for buyers of electric cars. Under the policy, all pure electric four-wheelers with an ex-showroom price of up to Rs 30 lakh will be exempt from paying road tax and registration charges, significantly reducing the upfront cost of purchase. The government has also announced direct purchase incentives for other EV categories. Buyers of electric two-wheelers will receive subsidies of Rs 30,000 in the first year, Rs 20,000 in the second year and Rs 10,000 in the third year. Electric three-wheelers, including e-autos, will be eligible for incentives of Rs 50,000, Rs 40,000 and Rs 30,000 during the first three years of the policy. Buyers of N1 category electric trucks will receive purchase incentives of up to Rs 1 lakh. Owners of BS-IV or older four-wheelers will also be encouraged to switch by offering a scrappage incentive of Rs 1 lakh upon replacing their old vehicle with an electric one. However, the policy does not extend any financial incentives to hybrid vehicles. To simplify the process, the government will launch a dedicated online portal through which buyers can apply for all eligible incentives. The April 2026 draft EV policy had proposed incentives for strong hybrid vehicles, but the final Delhi EV Policy 2.0 offers none. Officials said the government chose to focus its financial support on fully electric vehicles rather than hybrids Amitabh Kant congratulated Rekha Gupta for the step. calling Delhi’s new EV policy is progressive, forward looking, innovative and transformational, he noted, “The plan to stop new registrations of ICE three-wheelers and N1 trucks from January 2027 and two-wheelers from April 2028 is a bold step in the right direction. It has also given a big push to Charging infrastructure. Chief Minister Rekha Gupta said benefits worth around Rs 15,000 crore, including government investment, tax exemptions and EV infrastructure development, will be extended under the policy over the next four years to accelerate electric mobility in the capital. Beyond incentives, the policy reshapes Delhi’s transport roadmap While financial incentives are designed to make EV ownership more affordable, the policy also lays down a long-term roadmap for transitioning Delhi’s transport ecosystem towards zero-emission mobility. Only electric autorickshaws will be registered in Delhi from January 1, 2027, while registrations of new petrol and CNG two-wheelers will gradually be phased out. From April 1, 2028, only electric two-wheelers will be registered in the capital. To support the growing EV fleet, the government plans to install around 30,000 charging points across Delhi. The policy also targets converting 30 per cent of all school buses to electric by March 2030 while expanding vehicle scrapping facilities and charging infrastructure. The government’s focus on electric mobility comes as transport continues to be Delhi’s single-largest local source of PM2.5 pollution. According to the Centre for Science and Environment, vehicles contributed between 46 per cent and 53 per cent of the capital’s local PM2.5 pollution during last winter’s peak pollution period. Sunil Dahiya, founder and lead analyst at EnviroCatalyst, said the policy directly links cleaner transport with public health. “By addressing vehicular emissions, a primary pollution source, the government is finally ensuring the transport sector takes ownership of its responsibility to provide a livable environment,” Dahiya had told PTI. The timing also coincides with growing consumer interest in electric mobility. Delhi registered more than 1.07 lakh EVs during FY26, up from 83,512 in FY25, while total vehicle registrations in the city rose nearly 18 per cent to 8.5 lakh units. Over the past six years, more than 4.07 lakh electric vehicles have been registered in the national capital, indicating that the new incentives are likely to further accelerate EV adoption.
