Delhi Draft EV Policy 2026: Zero Road Tax On EVs Up To Rs 30 Lakh, Petrol Two-Wheelers To End by 2028

The Delhi government has released a new draft Electric Vehicle (EV) Policy for 2026-2030, aiming to reduce pollution and promote clean mobility in the national capital.

The policy introduces major changes, including a gradual shift to electric vehicles across different segments and attractive incentives for buyers.

The government has also invited public feedback on the draft before finalising it, showing its intent to involve citizens in shaping Delhi's green future.

Gradual Shift to Electric Vehicles

One of the most important highlights of the policy is the clear timeline for switching to electric vehicles.

• From January 1, 2027, only electric three-wheelers will be allowed for new registrations.
• From April 1, 2028, only electric two-wheelers can be newly registered.

This step-by-step transition will help people and businesses adjust to the new system without sudden disruption.

Attractive Incentives for EV Buyers

To encourage people to choose electric vehicles, the government is offering financial benefits through a Direct Benefit Transfer (DBT) system.

• The incentives will be available to Delhi residents only.
• The vehicle must be registered in Delhi.
• Buyers will need to apply through a process that will be announced later by the Transport Department.

Benefits for Electric Car Buyers

The draft policy provides strong incentives for electric car buyers, especially for affordable models.

• 100% exemption on road tax and registration charges for EVs priced up to ₹30 lakh (valid till March 31, 2030).
• No tax benefits for cars priced above ₹30 lakh.
• A scrapping incentive of up to ₹1 lakh for those replacing old BS-IV or older vehicles with a new electric car.

To claim the scrapping benefit, buyers must purchase the new EV within six months of getting a Certificate of Deposit (CoD) from an authorised scrapping centre.

Support for Hybrid Vehicles

The policy also gives some support to strong hybrid vehicles.

• A 50% exemption on road tax and registration fees is proposed for hybrid cars.

This shows the government's balanced approach by encouraging cleaner options even beyond fully electric vehicles.

Incentives for Two-Wheelers and Auto-Rickshaws

Electric two-wheelers and auto-rickshaws are key to Delhi's daily transport, and the policy offers targeted benefits:

Electric Two-Wheelers

• ₹10,000 per kWh (up to ₹30,000) in the first year
• ₹6,600 per kWh (up to ₹20,000) in the second year
• ₹3,300 per kWh (up to ₹10,000) in the third year
• Applicable only if the vehicle price is below ₹2.25 lakh

Electric Auto-Rickshaws

• ₹50,000 incentive in the first year
• ₹40,000 in the second year
• ₹30,000 in the third year

These benefits apply to both new purchases and replacement of older CNG autos.

Incentives for Goods Vehicles

The policy also focuses on cleaner goods transport:

Electric e-trucks (N1 category) can get

• ₹1 lakh incentive in the first year
• ₹75,000 in the second year
• ₹50,000 in the third year

This move is expected to reduce pollution caused by delivery and commercial vehicles.

Electrification of Public and Institutional Transport

The government plans to electrify public and institutional transport systems:

School buses will gradually shift to electric:

• 10% by the second year
• 20% by the third year
• 30% by 2030
• All government vehicles (hired or owned) must be electric after the policy is implemented.
• New buses under Delhi's transport system will also move to electric, with the option to adopt cleaner fuels like hydrogen in the future.

Public Feedback Invited

The Delhi government has opened the draft policy for public suggestions for 30 days.
Citizens can share their feedback via:

• Email: [email protected]
• Post: Transport Department, Underhill Road, Delhi

This step ensures transparency and allows people to contribute to policymaking.

Background of Delhi's EV Push

Delhi first introduced its EV policy in August 2020 under the AAP government. The policy aimed to reduce air pollution and promote electric mobility. Although its initial term ended in August 2023, it has been extended multiple times.

The new draft policy builds on that foundation and sets more ambitious targets for the future.