Delhi EV Policy 2026 Unveiled: Subsidies, scrapping incentives, and tax exemptions detailed

Planning to speed up the adoption of EV vehicles in the capital, the government has yet again announced a slew of financial benefits for residents who choose to opt for cleaner mobility alternatives. The new benefits range from purchase incentives to scrapping incentives on older vehicles. If you are planning to shift to a new vehicle choosing an EV will enable you to avail these benefits.

Purchase Incentives

New owners opting for EV purchases would get purchase incentives for their choices. Provided subsidies will be offered through Direct Benefit Transfer, these subsidies will only be provided to Delhi residents, and the vehicle would have to be registered in the city.

Scrapping Incentives for Two-Wheelers

Residents of Delhi will be able to attain benefits of Rs 10,000 on buying a new electric bike if they scrap their older two-wheeler. These benefits will only be available if the purchase is made within six months of receiving the Certificate of Deposit (COD). These benefits will be available when scrapping Delhi-registered BS-IV or older two-wheelers.

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Users buying three-wheelers for commercial purposes will receive a Rs 25,000 incentive on the purchase of a new electric three-wheeler, but the scooter must be purchased within six months of the COD issue.

For Private Cars

New owners will soon be able to receive up to Rs 1,00,000 as an incentive on the purchase of new electric vehicles. Beyond that, the ex-factory price will be capped at Rs 30 lakh. Users will have to purchase the new vehicle within six months of COD issuance.

These subsidies will only be valid for scrapping Delhi-registered BS-IV or older vehicles and will be applicable only for the first 1,00,000 eligible applicants.

Four-Wheeler Goods Vehicles

Rs 50,000 has been announced on the purchase of new electric goods vehicles, but the purchase would have to be completed within six months of COD issuance. The subsidies will only be applicable for scrapping Delhi-registered BS-IV and older N1 category goods carriers.

To further aid EV buyers and persuade existing users to shift to EVs, electric vehicles will be fully exempt from road tax and registration charges. EV cars priced above Rs 30 lakh are not eligible. Strong hybrids will be available with a 50% reduction in road tax and registration fees.

Deadlines for New Purchases and Registration

From January 1, 2027, only new electric three-wheelers will be allowed to be registered. From April 1, 2028, new registrations will be limited to electric two-wheelers only. From January 1, 2026, aggregators will not be allowed to add new petrol or diesel vehicles to their fleets.