Delhi's EV push: E-cars under Rs 30 lakh tax-free, no new petrol bikes from 2028
In a major push to tackle air pollution that routinely chokes Delhi, the Cabinet approved a new EV Policy that exempts electric cars priced up to Rs 30 lakh from road tax and registration fees and charts a phased transition to cleaner transport from 2028.
Electric cars priced up to Rs 30 lakh will be exempt from road tax and registration fees in Delhi under the new Electric Vehicle (EV) Policy approved by the Cabinet on Monday, as the government steps up efforts to promote cleaner transport and tackle the severe air pollution that chokes the national capital, particularly during winters.
The policy also mandates that only electric autorickshaws will be registered from January 1, 2027, while registration of new petrol and CNG-powered two-wheelers will be phased out in favour of electric models from April 1, 2028.
The policy, which will now be sent to Lieutenant Governor Taranjit Singh Sandhu for approval, is planned to come into effect from July 1 and remain in force until March 31, 2030, Chief Minister Rekha Gupta said.
WHAT ARE THE INCENTIVES FOR VEHICLE USERS?
Apart from the tax exemption for electric cars, the policy offers purchase incentives across vehicle categories. Buyers of electric two-wheelers will receive subsidies of Rs 30,000, Rs 20,000 and Rs 10,000 in the first, second and third years, respectively. Electric three-wheeler buyers will be eligible for incentives of Rs 50,000, Rs 40,000 and Rs 30,000 over the same period.
The policy also provides a purchase incentive of up to Rs 1 lakh for buyers of N1-category electric trucks and a scrapping incentive of Rs 1 lakh for owners of BS-IV or older four-wheelers who scrap their vehicles and switch to electric alternatives. Officials clarified that no subsidy will be available for hybrid vehicles, with the policy focusing exclusively on zero-emission vehicles.
As part of the transition plan, only electric autorickshaws will be registered in Delhi from January 1, 2027. Registration of new petrol and CNG-powered two-wheelers will be phased out, with only electric two-wheelers to be registered from April 1, 2028.
WHAT REKHA GUPTA SAID ON EV POLICY
Announcing the Cabinet decision, CM Gupta said the policy was aimed at making Delhi a pollution-free city through a phased transition to electric mobility.
"This is truly a historic day. We aim to implement the Delhi EV Policy from July 1. Following the Lieutenant Governor's approval, the policy will remain in effect until March 31, 2030," she said.
The Chief Minister said the government expects benefits and investments worth around Rs 15,000 crore under the policy over the next four years. Of this, about Rs 7,000 crore will be spent on incentives, while another Rs 8,000 crore has been earmarked for EV infrastructure development and tax concessions.
To support the transition, the Delhi government has set a target of installing 32,000 charging points across the city and has already identified land for the required infrastructure. A dedicated online portal will also be developed for applications related to EV incentives.
Gupta said the policy covers two-wheelers, three-wheelers, four-wheelers, N1 trucks (light commercial vehicles designed for transporting goods with a maximum gross vehicle weight not exceeding 3,500 kg) and Gramin Seva vehicles, and has been designed without any cap on the number of vehicles eligible for incentives.
Officials said the policy aims to increase EV adoption, expand charging infrastructure, promote vehicle scrapping and reduce vehicular pollution across the city.
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Electric cars priced up to Rs 30 lakh will be exempt from road tax and registration fees in Delhi under the new Electric Vehicle (EV) Policy approved by the Cabinet on Monday, as the government steps up efforts to promote cleaner transport and tackle the severe air pollution that chokes the national capital, particularly during winters.
The policy also mandates that only electric autorickshaws will be registered from January 1, 2027, while registration of new petrol and CNG-powered two-wheelers will be phased out in favour of electric models from April 1, 2028.
The policy, which will now be sent to Lieutenant Governor Taranjit Singh Sandhu for approval, is planned to come into effect from July 1 and remain in force until March 31, 2030, Chief Minister Rekha Gupta said.
WHAT ARE THE INCENTIVES FOR VEHICLE USERS?
Apart from the tax exemption for electric cars, the policy offers purchase incentives across vehicle categories. Buyers of electric two-wheelers will receive subsidies of Rs 30,000, Rs 20,000 and Rs 10,000 in the first, second and third years, respectively. Electric three-wheeler buyers will be eligible for incentives of Rs 50,000, Rs 40,000 and Rs 30,000 over the same period.
The policy also provides a purchase incentive of up to Rs 1 lakh for buyers of N1-category electric trucks and a scrapping incentive of Rs 1 lakh for owners of BS-IV or older four-wheelers who scrap their vehicles and switch to electric alternatives. Officials clarified that no subsidy will be available for hybrid vehicles, with the policy focusing exclusively on zero-emission vehicles.
As part of the transition plan, only electric autorickshaws will be registered in Delhi from January 1, 2027. Registration of new petrol and CNG-powered two-wheelers will be phased out, with only electric two-wheelers to be registered from April 1, 2028.
WHAT REKHA GUPTA SAID ON EV POLICY
Announcing the Cabinet decision, CM Gupta said the policy was aimed at making Delhi a pollution-free city through a phased transition to electric mobility.
"This is truly a historic day. We aim to implement the Delhi EV Policy from July 1. Following the Lieutenant Governor's approval, the policy will remain in effect until March 31, 2030," she said.
The Chief Minister said the government expects benefits and investments worth around Rs 15,000 crore under the policy over the next four years. Of this, about Rs 7,000 crore will be spent on incentives, while another Rs 8,000 crore has been earmarked for EV infrastructure development and tax concessions.
To support the transition, the Delhi government has set a target of installing 32,000 charging points across the city and has already identified land for the required infrastructure. A dedicated online portal will also be developed for applications related to EV incentives.
Gupta said the policy covers two-wheelers, three-wheelers, four-wheelers, N1 trucks (light commercial vehicles designed for transporting goods with a maximum gross vehicle weight not exceeding 3,500 kg) and Gramin Seva vehicles, and has been designed without any cap on the number of vehicles eligible for incentives.
Officials said the policy aims to increase EV adoption, expand charging infrastructure, promote vehicle scrapping and reduce vehicular pollution across the city.
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