Delhi Unveils Comprehensive Electric Vehicle Incentive Package to Accelerate Green Mobility
In a significant push towards sustainable urban transport, the Delhi government has rolled out a robust set of incentives designed to encourage residents to adopt electric vehicles (EVs). This initiative aims to reduce air pollution and promote cleaner transportation options across the national capital.
Direct Purchase Subsidies for Key Vehicle Categories
The new policy offers direct financial benefits through a direct benefit transfer system, exclusively for Delhi residents who register their vehicles in the city. The incentives are structured to phase out over three years, providing higher support initially.
Three-Wheelers (Auto-Rickshaws):
- Year 1: Rs 50,000 incentive
- Year 2: Rs 40,000 incentive
- Year 3: Rs 30,000 incentive
This subsidy is specifically applicable for replacing old CNG auto-rickshaws, facilitating a smoother transition to electric models.
Four-Wheeler Goods Vehicles:
- Year 1: Rs 1,00,000 incentive
- Year 2: Rs 75,000 incentive
- Year 3: Rs 50,000 incentive
These incentives target commercial vehicles, aiming to electrify goods transport in Delhi.
Scrapping Incentives to Phase Out Polluting Vehicles
To further boost EV adoption, the policy includes scrapping incentives for old, polluting vehicles. Buyers must purchase new electric vehicles within six months of receiving a certificate of deposit for scrapping their old ones.
Two-Wheelers: An incentive of Rs 10,000 is offered on purchasing a new electric bike. This applies to scrapping Delhi-registered, BS-IV and below two-wheelers.
Three-Wheelers (L5M): A Rs 25,000 incentive is available for buying a new electric three-wheeler after scrapping eligible old vehicles.
Cars (Private): A substantial incentive of Rs 1,00,000 is provided for purchasing a new electric car, with the condition that the ex-factory price does not exceed Rs 30 lakh. This benefit is limited to the first 1,00,000 eligible applicants and applies to scrapping Delhi-registered, BS-IV and below cars.
Four-Wheeler Goods Vehicles: A Rs 50,000 incentive is offered for new electric four-wheeler goods vehicles, applicable after scrapping Delhi-registered BS-IV and below N1 goods carriers.
Road Tax and Registration Fee Exemptions
The policy also includes significant tax breaks to make EVs more affordable.
- Electric Vehicles: 100% exemption from road tax and registration fees, except for electric cars with an ex-showroom price above Rs 30 lakh, which are not eligible.
- Strong Hybrid Vehicles: Eligible for a 50% exemption on road tax and registration fees, but only for cars priced up to Rs 30 lakh.
Future Electrification Mandates for Vehicle Registrations
To ensure a long-term shift towards electric mobility, Delhi has set deadlines for phasing out new registrations of internal combustion engine vehicles.
- From January 1, 2027: Only electric three-wheelers (L5) will be allowed for new registrations.
- From April 1, 2028: Only electric two-wheelers will be permitted for new registrations.
Regulations for Fleet Aggregators
Starting January 1, 2026, fleet operators in Delhi will be prohibited from adding new petrol or diesel vehicles to their fleets. Exceptions include four-wheeler light commercial vehicles and light goods vehicles (N1 category, up to 3.5 tonnes) and two-wheelers, with specific deadlines to be notified later.
This comprehensive policy underscores Delhi's commitment to becoming a leader in electric vehicle adoption, offering a mix of immediate financial incentives and long-term regulatory measures to drive the transition to cleaner transport.
