Delhi EV Policy 2026 Approved: ₹1 Lakh Scrappage Incentive, Tax-Free EVs, Electric-Only Two-Wheelers From 2028

In one of the biggest policy moves to accelerate electric mobility in India, the Delhi Government has approved its new Electric Vehicle (EV) Policy 2026, replacing the earlier policy with a far more ambitious roadmap. The new framework not only introduces scrappage incentives of up to ₹1 lakh, but also offers 100% road tax and registration fee exemption for eligible electric vehicles while laying out a roadmap to phase out new petrol and CNG vehicle registrations in selected categories over the coming years.

The policy is expected to come into effect from July 1, 2026, with the Delhi Government planning to invest around ₹15,000 crore over the next four years to support EV adoption, charging infrastructure, and cleaner urban mobility.

Key Highlights of Delhi EV Policy 2026

₹1 Lakh Scrappage Incentive for Electric Cars

The biggest attraction of the policy is the generous scrappage benefit.

Owners scrapping a Delhi-registered BS-IV or older petrol/diesel car can receive:

• ₹1,00,000 scrappage incentive

• Applicable on purchase of a new electric car priced below ₹30 lakh (ex-factory)

• Vehicle must be purchased within six months of receiving the Certificate of Deposit (CoD)

• Limited to the first 1 lakh eligible applicants.

Purchase Incentives Across Vehicle Segments

Apart from scrappage benefits, Delhi will continue offering purchase incentives for multiple EV categories.

Vehicle Category	Maximum Incentive
Electric Two-Wheelers	Up to ₹30,000 (Year 1)
Electric Auto Rickshaws	₹50,000
Electric Goods Vehicles (N1)	₹1,00,000

The incentives gradually reduce over subsequent years to encourage early adoption.

100% Road Tax & Registration Fee Waiver

Another major benefit is complete exemption from:

• Road Tax

• Registration Charges

This applies to electric cars priced up to ₹30 lakh and remains valid until March 31, 2030.

Strong hybrid vehicles will receive 50% exemption, while electric cars priced above ₹30 lakh will not qualify for the tax waiver.

Petrol & CNG Vehicles Face Gradual Phase-Out

Perhaps the most significant long-term announcement is Delhi's clear transition timeline.

From January 1, 2027

• Only electric auto-rickshaws will be eligible for new registration.

From April 1, 2028

• Registration of new petrol and CNG two-wheelers will be discontinued.

• Only electric two-wheelers will be permitted for new registrations.

While existing ICE vehicles can continue to operate, future registrations will increasingly shift toward electric mobility.

Massive Charging Infrastructure Expansion

Infrastructure remains a key focus of the new policy.

Delhi plans to significantly expand its EV ecosystem through:

• Around 32,000 public charging points across the city

• Battery swapping infrastructure

• Single-window clearance for charging operators

• Dedicated digital platform for charger deployment

• Mandatory charging facilities at OEM dealerships

Delhi Transco Limited (DTL) has been designated as the nodal agency to oversee planning and implementation.

Government & School Fleets to Go Electric

The policy also targets fleet electrification.

Key mandates include:

• All newly hired or leased Delhi Government vehicles to be electric.

• All new DTC intra-city buses to be electric.

• Schools to gradually electrify their bus fleets:

  • 10% by Year 2

  • 20% by Year 3

  • 30% by March 2030.

Focus on Battery Recycling

Recognising the growing EV ecosystem, the policy also introduces measures for:

• Battery traceability

• Safe recycling

• Second-life battery applications

• Extended Producer Responsibility (EPR)

• Battery collection centres across Delhi.

Why This Policy Matters

Delhi has long struggled with severe air pollution, with vehicular emissions being one of its largest contributors during winter months. The new EV Policy aims to accelerate the transition toward cleaner transportation by combining financial incentives with regulatory mandates.

If implemented effectively, the policy could become one of India's strongest state-level EV adoption frameworks and may influence similar initiatives in other states.

AutoPunditz Take

The Delhi EV Policy 2026 goes well beyond offering subsidies. It establishes a comprehensive roadmap that links financial incentives, charging infrastructure, scrappage benefits, fleet electrification, and phased restrictions on new internal combustion vehicle registrations.

For buyers, the ₹1 lakh scrappage incentive, tax exemptions, and purchase subsidies significantly reduce the cost of switching to electric mobility. For the industry, the policy provides clearer long-term direction, encouraging manufacturers, charging operators, and fleet owners to invest with greater confidence.

As India's largest urban EV market continues to expand, the success of this policy could become a benchmark for future electric mobility initiatives across the country.