Delhi Plans Billion Dollar EV Policy With Buyer Incentives

NEW DELHI – The Delhi government has finalized a new electric vehicle (EV) policy with an outlay of ₹150 billion (about $1.59 billion) over the next four years to accelerate the adoption of electric mobility and expand charging infrastructure across the national capital.

The policy, expected to come into effect on July 1, Reuters reported, offers financial incentives for buyers of electric two-wheelers, cars and small commercial trucks, while also supporting the installation of 32,000 EV charging points across Delhi.

Under the new policy, owners who scrap cars purchased before April 1, 2020, and replace them with an electric vehicle will receive a scrapping incentive of $1,060.

Buyers of battery electric vehicles priced at up to ₹3 million will also be exempt from paying road tax and registration fees, which typically account for 4% to 10% of a vehicle’s price.

To encourage the adoption of electric two-wheelers, the government will provide a cash incentive of ₹30,000 for buyers of electric scooters and motorcycles during the policy’s first year. The incentive will gradually decline to ₹10,000 by the third year.

The policy also outlines a phased transition away from conventional fuel-powered two-wheelers. From April 1, 2028, the Delhi government will register only electric two-wheelers, requiring buyers to shift from gasoline-powered and other conventional models, Reuters said.

Hybrid vehicles have not been included in the new policy.