The Delhi government is gearing up to launch a comprehensive and ambitious Electric Vehicle (EV) Policy 2.0, designed to supercharge the capital's transition to clean transportation. The new policy framework proposes a significantly expanded incentive structure to boost consumer adoption, support local manufacturing, and build robust charging infrastructure.
Major Boost for Electric Two-Wheelers and New Retrofitting Incentive
At the heart of the proposed Delhi EV Policy 2.0 is a strong focus on electric two-wheelers (e2Ws). The government plans to offer an incentive of Rs 21,000 per vehicle, with an even higher subsidy of Rs 30,000 for women buyers to encourage their participation in the EV shift. This benefit is likely to be capped for the first one lakh vehicles. Reflecting this push, the adoption target for e2Ws is set to be raised sharply from the existing five lakh to a staggering 12 lakh vehicles.
In a pioneering move, the policy also introduces a Rs 50,000 incentive for retrofitting existing petrol or diesel cars into electric vehicles. This conversion process involves replacing the internal combustion engine with an electric powertrain. This incentive will be limited to the first 1,000 cars, and the government plans to invest in research and engage specialists to develop this sector further.
Revised Subsidies for Four-Wheelers and Scrappage Scheme
For private electric four-wheelers, subsidies are set for a comeback with stricter eligibility criteria. Officials stated that private electric cars priced below Rs 25 lakh will qualify. The proposed incentive is Rs 10,000 per kWh of battery capacity, with a maximum cap of Rs 1 lakh per vehicle for the initial 27,000 cars. This is aimed squarely at boosting the mass-market segment rather than premium EVs.
To further ease the purchase, the policy recommends an interest subvention scheme where the government would bear 5% of the loan interest for eligible buyers. Additionally, a scrapping incentive for old two-wheelers, three-wheelers, and light commercial vehicles is proposed, directly linking EV adoption with the removal of polluting vehicles from Delhi's roads.
Focus on Manufacturing, R&D, and Policy Timeline
On the supply side, EV Policy 2.0 emphasizes strengthening domestic manufacturing. Companies that produce EV components locally will be eligible for financial incentives, aligning with the national 'Make in India' initiative and aiming to generate jobs within Delhi's industrial ecosystem.
A massive increase in the research and development corpus is also on the cards—from the current Rs 5 crore to Rs 100 crore. This fund will support innovation in critical areas like batteries, charging solutions, and EV technologies.
The existing EV policy, which was due to expire this year, has been extended until March 2026, or until the revised policy is officially notified. The new EV Policy 2.0 is expected to be unveiled after public consultations, likely in the first quarter of 2026. Officials confirm that while there may be minor changes, the final structure will follow the ambitious direction of the current proposals.
