The Delhi Government is set to introduce its highly anticipated Electric Vehicle (EV) Policy 2.0, which officials describe as the city's most ambitious initiative yet to promote clean mobility. The draft recommendations, reviewed by the Transport Department, propose a comprehensive package of consumer subsidies, industry support measures, and infrastructure enhancements to accelerate the transition from petrol and diesel vehicles. Key highlights include targeted incentives for women buyers, substantial benefits for four-wheelers, and plans for significant battery energy storage additions. The policy aims to build on the success of the 2020 EV framework while addressing ongoing challenges like air pollution and charging access in the national capital.

A major focus of the draft is boosting adoption of electric two-wheelers, which are seen as critical for mass electrification. The proposed subsidy stands at Rs 21,000 per vehicle, with women buyers eligible for a higher amount of Rs 30,000 to encourage greater participation from female riders. The overall target for electric two-wheeler adoption has been sharply increased from the previous goal of 5 lakh units to 12 lakh vehicles in the coming years, with a possible cap of one lakh subsidized units initially. The policy also incorporates scrappage incentives for old polluting two-wheelers, three-wheelers, and light commercial vehicles, linking new EV purchases to the phase-out of high-emission vehicles. Additionally, a first-of-its-kind provision offers Rs 50,000 for the first 1,000 retrofits of petrol or diesel cars into electric versions.

For four-wheelers, the draft recommends reintroducing subsidies with stricter criteria to prioritize mass-market models. Private electric cars priced below Rs 25 lakh would qualify for incentives calculated at Rs 10,000 per kWh of battery capacity, capped at Rs 1 lakh per vehicle, applicable to the first 27,000 registrations. This approach is intended to stimulate demand in affordable segments rather than premium ones. To further ease adoption, the policy proposes an interest subvention scheme where the government would cover 5% of loan interest for eligible buyers, targeting middle-income households and small fleet operators. These measures complement broader industry incentives, including support for local manufacturing of EV components and increased funding for research and development.

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The draft also emphasizes long-term infrastructure resilience, with a plan to establish 2.5 GWh of Battery Energy Storage System (BESS) capacity by 2030. This would help manage peak electricity demand, reduce costs during high-load periods, and ensure a reliable power supply for the growing number of EVs. The policy is expected to be finalized and rolled out in the first quarter of 2026 following public consultations and stakeholder feedback. Transport Department officials highlight that these combined efforts—consumer incentives, manufacturing support, and power upgrades—position Delhi to significantly reduce vehicular emissions and strengthen its leadership in India's EV transition.

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