Delhi EV Policy Offers Up To ₹1 Lakh Subsidy For Four-Wheelers

The Delhi government has finalised a new Electric Vehicle (EV) policy that offers subsidies of up to ₹1 lakh to promote the adoption of zero-emission vehicles across the national capital. The decision, approved by the state Cabinet and now awaiting clearance from the Lieutenant Governor, is aimed at accelerating the transition to cleaner mobility and reducing vehicular pollution over the next four years. The policy is scheduled for implementation from July 1, 2026, to March 31, 2030.

Under the proposed framework, incentives will be provided across multiple vehicle categories, with benefits structured to encourage early adoption. Buyers of eligible electric two-wheelers will receive ₹30,000 in the first year, ₹20,000 in the second year, and ₹10,000 in the third year, reflecting a gradual reduction in support over time. Similarly, electric three-wheelers will receive ₹50,000 in the first year, ₹30,000 in the second year, and ₹20,000 in the third year, while electric trucks will be eligible for incentives of up to ₹1 lakh in the initial year.

For private vehicle owners, the policy includes incentives for electric four-wheelers priced below ₹30 lakh, with eligible buyers receiving up to ₹1 lakh in support. The government has also introduced additional benefits linked to vehicle scrappage, allowing owners of older BS-IV emission norm vehicles to access incentives when switching to cleaner alternatives. Certain categories of electric N2 trucks will also be exempted from entry fees to further support commercial adoption.

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The policy comes with a significant financial commitment, with an estimated outlay of ₹7,000 crore over its implementation period. In addition to purchase subsidies, the government has earmarked ₹8,000 crore for supporting EV infrastructure, including charging networks and associated facilities. Authorities have identified land for setting up around 32,000 charging points across Delhi to ensure adequate support for the growing EV ecosystem.

Officials stated that the scheme is designed not only to increase EV penetration but also to promote hybrid vehicles and discourage the use of high-emission transport options. The incentives will gradually reduce each year to encourage early adoption while ensuring long-term sustainability of the program. The policy also includes limits on the number of vehicles eligible for subsidies and tax benefits to manage fiscal impact and maintain targeted implementation.

With this announcement, Delhi aims to strengthen its position as a leading city in India’s clean mobility transition. If implemented effectively, the policy is expected to significantly boost EV adoption, expand charging infrastructure, and contribute to long-term reductions in urban air pollution in one of the world’s most congested metropolitan regions.

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