Delhi EV Policy 2026 Explained: What Prospective Vehicle Buyers Need to Know Before July 1

In 2026, buying a vehicle involves multiple considerations regarding not just the type of vehicle but also the fuel that powers it. Amid a broader push to promote electric vehicles, the Delhi government approved the Electric Vehicle Policy 2.0 on June 29, 2026.

Addressing the media, Delhi Chief Minister Rekha Gupta spoke about the collaborative effort behind the framework at a press conference. She stated that the draft was prepared and approved by the cabinet, following extensive discussions. She added that the new policy seeks to ensure that every person purchasing a vehicle in Delhi will be able to benefit from it once implemented.

Highlighting the scale of the initiative, Gupta added that no state in the country has provided this level of support for EV adoption. She also thanked the central government and Prime Minister Narendra Modi for extending their support to tackle pollution across the National Capital Region.

The policy is set to take effect on July 1, 2026, and run until March 2030. The new policy framework seeks to introduce regulatory mandates and financial incentives. While the government has announced several provisions for a broad-based EV push, such as incentives for the adoption of EVs for commercial purposes.

However, the rules are set to affect prospective vehicle buyers in Delhi, as they fundamentally change how vehicles will be purchased and registered in the capital. Here’s a look at some of the key provisions which vehicle buyers must know:

Strict Timelines for Petrol Vehicle Phase Out

As a part of the policy, the government has introduced strict deadlines to phase out new internal combustion engine (ICE) powered two-wheelers and three-wheelers. The government has calendar dates to halt the registration of new petrol and CNG models of two-wheelers and three-wheelers. From January 1, 2027, only electric auto rickshaws will be permitted for new registration.

Additionally, the EV transition is set to expand the following year, as from April 1, 2028, the registration of any new petrol two-wheelers will not be allowed. Thus, buyers intending to purchase a new petrol motorcycle or scooter must do so before this deadline, although petrol two-wheelers bought before the deadline can still be driven legally for their operational lifecycles.

Direct Cash Subsidies for Early Adopters

To ease the transition from ICE to EV, the Delhi government’s policy offers direct purchase subsidies that step down annually, rewarding early adopters. In the first year of implementation, buyers of electric two-wheelers priced under Rs 2.25 lakh can claim a subsidy of up to Rs 30,000. This amount reduces to Rs 20,000 in the second year and Rs 10,000 in the third.

On the other hand, buyers of electric three-wheelers will receive Rs 50,000 in the first year, which steps down to Rs 30,000 by the third year. Small electric trucks in the N1 category qualify for up to Rs 1 lakh in the first year. These funds will be transferred directly to the authenticated bank accounts of buyers after the registration of the vehicle in Delhi.

Incentives for Private Cars and Scrappage

For car-buyers, the financial incentives focus on tax exemptions and scrappage bonuses rather than direct purchase subsidies. Buyers who will purchase pure electric cars priced up to Rs 30 lakh will get their road tax and registration fees waived off until March 2030. However, cars priced above this threshold will not receive any tax benefits. The policy excludes hybrid vehicles from any subsidies or tax waivers, focusing exclusively on pure battery electric platforms, as clarified by Gupta in the press conference.

Car buyers can also benefit from scrappage incentives. Car buyers who scrap a Delhi-registered BS IV or older petrol or diesel car and purchase a new electric car priced under Rs 30 lakh within six months will be eligible for a scrappage bonus of Rs 1 lakh. This benefit is limited to the first one lakh eligible applicants. On the other hand, scrapping an older two-wheeler or auto rickshaw can yield an extra Rs 10,000 and Rs 25,000, respectively.

Additional Rules to Keep in Mind

While the policy provides certain benefits to new vehicle buyers, they should keep in mind that the subsidy comes with ownership conditions. Electric vehicles purchased under the policy cannot be sold or registered in another state for three years.

To conclude, the new EV policy seeks to bridge the gap between ICE vehicles and EV vehicles in terms of price. Typically, EV vehicles are more expensive than their ICE counterparts thus the subsidies and incentives seek to help prospective buyers in exercising greater choice by availing the subsidy and not stopping from switching to an EV because of the high price.