Delhi New EV Policy 2.0: New Rules, Subsidies, and Deadlines starting from July 1

The Delhi government introduces the new Delhi Electric Vehicle (EV) Policy 2.0, which will be effective from July 1, 2026 until March 31, 2030. The government has allocated a ₹15,000 crore budget to implement the policy. 

The policy is a push to improve the air quality of the national capital and reduce the dependency on fossil fuel imports. The policy includes financial subsidies, tax waivers and a regulatory ban on Internal Combustion Engine registrations. This policy will be implemented in a phased manner. 

Road Tax and Registration Exemptions 

According to the new EV Policy 2.0 buying an electric vehicle in Delhi will be cheaper due to tax waivers and an easy administrative process. The government has also placed a price cap to ensure fiscal benefits for EV buyers. 

100% waiver on both road tax and registration fees on electric vehicles up to ₹30 Lakh. It can save over ₹1.5 lakh to ₹2 lakh on road. EVs above the ₹30 lakh ex-showroom threshold receive no tax exemptions or subsidies. Standard registration and road tax apply. 

For strong hybrid vehicles the government approves an exclusion of strong hybrid cars from any subsidies or tax waivers by signaling a commitment to zero-emission and electric vehicles platform. 

Direct Cash Subsidies 

The Delhi government has introduced a direct purchase subsidy to encourage buyers to switch to electric vehicles. The cash incentives are introduced in the first year and will be phased out over subsequent years. All subsidies will be credited directly to the buyer’s authenticated bank account via a streamlined single window online portal managed by the transport department. 

Vehicle Scrappage Incentives and Bonuses 

The Delhi new Electric vehicle policy's main objective is to remove the older internal combustion engine (ICE) vehicles and polluting vehicles. The government has introduced financial rewards for deregistering and scrapping old vehicles.

If you trade up for an EV to claim these benefits, scrap a Delhi-registered BS-IV or older vehicle and purchase an EV within 6 months of obtaining an official Certificate of Deposit (CoD). Here are the incentives introduced by the government. 

• For Private Cars a government ₹1,00,000 scrappage bonus is available for the first 1,00,000 eligible car buyers who transition to an EV under ₹30 lakh.

The Deadlines for Phase Out of Petrol and CNG

The Delhi EV Policy 2.0 is a firm sunset rule on registration of new fossil-fuel-powered vehicles. The law does not ban existing petrol or CNG vehicles from running out their legal lifespan, which permanently closes the door on new registrations.

Phase-Out of Petrol and CNG from January 1, 2027

The commercial shift from January 1, 2027, no new petrol or CNG auto-rickshaws, three-wheelers or light N1 commercial goods delivery vans can be freshly registered in Delhi. Only electric models will be permitted.

The Two-Wheeler Ban from April 2028

All new registrations of petrol and CNG scooters and motorcycles will be permanently discontinued in Delhi from this date onwards anyone purchasing a new two wheeler for use in the capital to choose an electric model.

Guidelines for Schools, Corporates and Government Vehicles 

The new EV policy has recognised the charging infrastructure and institutional demand along with private ownership. It mandates internal systemic revision including that school buses operating in Delhi must ensure that at least 10% of their bus fleet is entirely electric within two years (by 2028). This target scales to 20% in the third year, and 30% by March 31, 2030.

Aggregators and delivery services under accompanying aggregator guidelines for Taxi platforms and delivery are prohibited from onboarding new ICE vehicles with strict conversion checkpoints to enforce total zero-emission delivery operations.

Government vehicles including all leased or hired or newly purchased vehicles for state departments must be 100% electric within 12 months.

The government has allocated ₹8,000 crore for infrastructure, plotting a network of 32,000 public charging points across the capital mandating OEM vehicle dealerships with public charging units and standardizing battery-swapping channels. 

Delhi’s EV Policy 2.0 sets a profound precedent for metropolitan decarbonization across developing economies and India.