The Delhi Cabinet has approved a new Electric Vehicle (EV) Policy aimed at accelerating the adoption of electric mobility through purchase incentives, scrappage benefits and tax exemptions. Announcing the decision at the Delhi Secretariat, Chief Minister Rekha Gupta said the policy will come into effect on July 1, 2026, after receiving the approval of Lieutenant Governor Taranjit Singh Sandhu. The policy will remain in force until March 31, 2030.

The policy introduces financial incentives that are designed to encourage early adoption of electric vehicles. Buyers purchasing eligible electric two-wheelers during the first year of the scheme will receive a subsidy of Rs. 10,000 per kWh of battery capacity, subject to a maximum benefit of Rs. 30,000. The subsidy will gradually decline over the following years, reducing to Rs. 6,600 per kWh with a maximum of Rs. 20,000 in the second year and Rs. 3,300 per kWh with a maximum benefit of Rs. 10,000 in the third year.

According to the policy framework, only electric two-wheelers with an ex-factory price below Rs. 2.25 lakh will be eligible for these purchase incentives. The government has adopted a staggered incentive structure to encourage consumers to switch to electric vehicles sooner rather than later. Alongside purchase subsidies, the policy also includes scrappage incentives and tax exemptions to reduce the overall cost of ownership for prospective buyers.

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The Delhi government believes that the revised policy will play a key role in increasing EV adoption across the capital while contributing to cleaner urban transport and improved air quality. By combining direct financial assistance with tax benefits, the administration aims to make electric vehicles more affordable for consumers and accelerate the transition away from conventional fuel-powered vehicles over the next four years.

Officials have indicated that the policy forms part of Delhi's broader strategy to promote sustainable transportation and reduce vehicular emissions. While details of the final notification are expected to be released separately, the approved framework outlines the government's intention to support both consumers and the electric mobility ecosystem through targeted incentives and long-term policy stability.

With the policy set to take effect from July 1, eligible buyers planning to purchase electric two-wheelers are expected to benefit from the highest level of subsidies during the first year of implementation. The gradual reduction in incentives over subsequent years is intended to encourage early adoption while supporting the capital's long-term goal of expanding electric vehicle usage and reducing dependence on fossil-fuel-powered transport.

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