CM Rekha Gupta Announces Delhi EV Policy: Only Electric 3-Wheelers from 2027, 2-Wheelers from 2028

The Delhi EV Policy 2026 proposes phased electrification of two and three wheelers, school buses and fleet vehicles, supported by subsidies, tax relief, scrappage benefits and charging infrastructure expansion to promote cleaner mobility in Delhi through 2030.

Delhi has proposed strict new rules for electric vehicles, with major changes planned from 2026 onwards. A draft Delhi EV Policy 2026 sets timelines to stop registering most new petrol and diesel two and three-wheelers, while also offering large subsidies and tax waivers to push clean transport adoption.

Under the draft Delhi EV Policy 2026, only electric three-wheelers can be registered for the first time from January 1, 2027. From April 1, 2028, first-time registrations for two-wheelers in Delhi must also be electric. The policy further sets targets to shift school buses and aggregator fleets away from internal combustion engines.

Key mandates and goals under Delhi EV Policy 2026

The Delhi EV Policy 2026 will stay effective until March 31, 2030 if approved in its present form. It proposes phased electrification of school buses, with 10% of the fleet converted by the second year, 20% by the third, and 30% by March 2030. For fleet aggregators, no pure petrol or diesel conventional ICE vehicles can join fleets from January 2026.

Government departments under the Government of NCT of Delhi must also shift to electric vehicles for hired or leased transport, except where exemptions are granted. The draft Delhi EV Policy 2026 further states that all new inter-state buses added by the Delhi Transport Corporation and the transport department will be electric vehicles, tightening rules on public transport emissions.

Financial incentives and spending plan in Delhi EV Policy 2026

The Delhi EV Policy 2026 proposes a total budget of ₹3,954.25 crore. This includes ₹1,236.25 crore for direct purchase incentives, ₹1,718 crore for scrappage-linked benefits, and ₹1,000 crore for charging network expansion. Planned spending by year is ₹965.5 crore, ₹1,012.75 crore, ₹1,231.5 crore, and finally ₹744.5 crore in the fourth year.

Chief Minister Smt. Rekha Gupta said the draft Delhi EV Policy 2026 presents a detailed plan to shift Delhi towards cleaner mobility. Smt. Rekha Gupta said the policy blends financial support, tax relief, infrastructure investment and regulatory steps to raise electric vehicle use across the city, while also guiding public and private fleets.

"The proposed Delhi EV Draft Policy 2026 is a significant step towards establishing a clean, accessible and sustainable transport system in the capital. Extensive financial incentives, tax exemptions, mandatory provisions and infrastructure development have been emphasised to promote electric vehicles in Delhi," the Chief Minister said.

Subsidies and tax relief under Delhi EV Policy 2026

Purchase subsidies in the Delhi EV Policy 2026 will depend on vehicle type, price and battery capacity. Electric two-wheelers priced up to ₹2.25 lakh ex-factory can receive up to ₹30,000 in the first year, ₹20,000 in the second year and ₹10,000 in the third year, with benefits paid directly to eligible buyers.

The draft Delhi EV Policy 2026 lists different incentive levels for three-wheelers and goods vehicles. Electric three-wheelers in the L5M category will receive support of ₹50,000, ₹40,000 and ₹30,000 across three years. Electric four-wheeler goods vehicles in the N1 category will get ₹1 lakh, ₹75,000 and ₹50,000 over the same period, again based on eligibility rules.

Scrappage support is also built into the Delhi EV Policy 2026 to remove older vehicles. Proposed benefits are ₹10,000 for electric two-wheelers, ₹25,000 for electric three-wheelers, ₹1 lakh for non-transport electric cars and ₹50,000 for electric goods vehicles. These amounts apply to vehicles up to BS-IV standards, subject to scrapping certificates and notified time limits.

The Delhi EV Policy 2026 proposes that all monetary incentives will go through direct benefit transfer. Individuals, businesses and other entities with Delhi-registered vehicles can apply via a dedicated system managed by the transport department. Payments will be made only after verification of vehicle details, eligibility and supporting documents under the notified mechanism.

Road tax and registration fee exemptions form another feature of the Delhi EV Policy 2026. All electric vehicles registered in Delhi during the policy period will receive 100% exemption on these charges. Electric cars costing up to ₹30 lakh will enjoy full exemption until March 2030, while strong hybrid vehicles will receive a 50% concession, limited to that price band.

Infrastructure and governance in Delhi EV Policy 2026

Vehicles above ₹30 lakh will not receive tax or registration waivers under the Delhi EV Policy 2026. To support charging demand, Delhi Transco Limited has been chosen as nodal agency for public charging and battery swapping systems. A digital portal will be created to handle approvals, monitoring and ongoing operations across the city.

"DTL shall aggregate demand, proposed locations, and load requirements for public EV charging and battery swapping infrastructure… DTL shall develop, notify, and periodically update Standard Operating Procedures (SoPs) detailing technical standards, approval processes, timelines, service level benchmarks, and monitoring mechanisms for the deployment and operation of public EV charging and swapping infrastructure… DTL shall develop, operate, or integrate a dedicated digital portal… for end-to-end management…," the policy states.

The Delhi EV Policy 2026 also sets obligations for manufacturers and dealers. All OEMs operating in Delhi must install at least one public electric vehicle charging station at every dealership. These facilities must include specified charging points for two, three and four wheelers and align with PM E-DRIVE guidelines, aiming to widen access and ease ownership.

An EV fund will be formed under the Delhi EV Policy 2026 to channel money from multiple sources. These include budgetary allocations, central and state government schemes and environmental funds. An apex committee led by the transport minister will supervise implementation and fund use, supported by a high-level committee headed by the chief secretary to coordinate across departments.

Recycling, compliance and public inputs in Delhi EV Policy 2026

The Delhi EV Policy 2026, for the first time, directly covers battery recycling systems. The environment department will ensure vehicle manufacturers and other responsible players follow the Battery Waste Management Rules, 2022. This includes correct handling, reporting and recycling of used batteries under Extended Producer Responsibility and tracking through unique identification systems.

The Delhi Pollution Control Committee will help create battery collection centres across the city through public-private partnerships. Under the Delhi EV Policy 2026, DPCC will publish detailed norms for safe collection, storage, movement and recycling of batteries. Companies will need to file regular compliance reports and enable reuse, second-life applications and environmentally sound recycling of batteries.

Officials said the draft Delhi EV Policy 2026 has been uploaded on the transport department’s official website for public review. Suggestions and objections can be sent by email or post within 30 days, with the comment window open until May 10. Authorities made clear that representations received after the deadline will not be taken up.

The Delhi government has placed the Delhi EV Policy 2026 in the public domain with financial, regulatory and infrastructure plans clearly detailed. If finalised in its current form, it will reshape two and three-wheeler sales, public fleets and charging networks in Delhi up to March 2030, while tightening rules on batteries, scrappage and reporting duties.