Delhi Government Unveils Draft Electric Vehicle Policy with Major Incentives
Delhi govt releases draft EV policy, huge tax breaks for hybrid and EV cars proposed
The Indian Express
Image: The Indian Express
The Delhi Government has released the draft Electric Vehicle Policy-2026, proposing a 50% exemption on road tax for hybrid cars priced up to ₹30 lakh and a ban on new internal combustion engine two-wheelers from April 2028. The policy aims to promote electric vehicle adoption and improve air quality in the capital.
- 0150% road tax exemption for hybrid cars under ₹30 lakh.
- 02Ban on new internal combustion engine two-wheelers starting April 2028.
- 03100% exemption on road tax for electric vehicles registered in Delhi.
- 04Incentives for electric two- and three-wheelers to encourage adoption.
- 05Total budget of ₹3,954.25 crore allocated for the policy.
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The Delhi Government has proposed the draft Electric Vehicle Policy-2026, which includes significant incentives to promote electric vehicle (EV) adoption. Key features include a 50% exemption on road tax and registration fees for strong hybrid cars priced up to ₹30 lakh (approximately $36,000 USD). Additionally, the policy aims to ban the registration of new internal combustion engine (ICE) two-wheelers from April 2028 and CNG autos from 2027. Under the policy, all electric vehicles registered in Delhi will receive a 100% exemption from road tax and registration fees until March 31, 2030. The policy also proposes various purchase incentives for electric two- and three-wheelers, with buyers of electric two-wheelers priced up to ₹2.25 lakh (approximately $2,700 USD) eligible for an incentive of ₹10,000 per kWh in the first year. The incentives will decrease in subsequent years. Chief Minister Rekha Gupta emphasized that the policy is a significant step towards achieving a cleaner and sustainable transport system in Delhi. A total budget of ₹3,954.25 crore (approximately $477 million USD) has been allocated for the policy, which includes funds for purchase incentives, scrapping incentives, and the development of charging infrastructure. The public is invited to provide feedback on the draft policy until May 10, 2026.
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This policy aims to significantly reduce vehicular emissions and improve air quality in Delhi, benefiting residents and commuters by promoting cleaner transportation options.
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