Delhi EV Policy 2026: Cabinet Clears ₹15,000-Crore Electric Mobility Plan with Tax Waivers and EV Incentives

Delhi Cabinet has approved a ₹15,000-crore Delhi EV Policy 2026 featuring tax exemptions, purchase incentives, charging infrastructure expansion and a phased transition away from new petrol two-wheelers by 2028.

By Samarjit Kaur

on June 30, 2026

Delhi has approved its most ambitious electric mobility roadmap yet, clearing a Delhi EV Policy 2026 backed by an estimated investment of ₹15,000 crore over the next four years.

The Delhi EV Policy 2026 aims to:

  • Boost and encourage EV adoption
  • Reduce vehicular emissions
  • Strengthen charging infrastructure across New Delhi

The implementation is set to begin on 1 July, subject to final approvals.

Also Read: Delhi’s New EV Policy May Offer Up to ₹40,000 for Electric Two-Wheelers

Roadmap Sets Clear Shift Towards Electric Vehicles

The new policy outlines a phased transition to cleaner transport. From 1 January 2027, only electric auto-rickshaws will be eligible for fresh registrations in Delhi.

The city will also stop registering new petrol and compressed natural gas (CNG) two-wheelers from 1 April 2028, making electric models the only option for new registrations in that segment. Existing petrol and CNG vehicles will continue to operate under prevailing rules.

The government said the policy is designed to help Delhi move closer to its long-term clean mobility goals while tackling one of the capital’s biggest challenges, vehicle-related pollution. The policy is expected to remain in force until 31 March 2030.

Also Read: Delhi to Ban Petrol Two-Wheelers by 2028: What EV Policy 2.0 Means for You

Tax Waivers, Subsidies and Scrappage Incentives

To encourage faster adoption, electric cars priced up to ₹30 lakh (ex-showroom) will be exempt from road tax and registration fees.

The incentive package also includes subsidies of up to ₹30,000 for electric two-wheelers, up to ₹50,000 for electric three-wheelers and up to ₹1 lakh for eligible electric goods carriers during the initial phase.

Owners scrapping older Bharat Stage IV (BS-IV) and older four-wheelers while purchasing an EV can receive a scrappage incentive of up to ₹1 lakh. Hybrid vehicles, however, will not qualify for subsidies under the new policy.

Also Read: Delhi EV Policy 2.0: ₹175 Crore Scrappage Push Boosts the ‘Electric Shift’

Infrastructure Expansion at the Centre of the Plan

Alongside financial incentives, the Delhi government further plans to expand the city’s EV charging network.

This will be followed by strengthening the vehicle scrapping facility and introducing digital services for subsidy applications and related approvals.

“The government expects investments and benefits worth around ₹15,000 crore over four years through the policy, positioning Delhi as a leading electric mobility market while supporting cleaner urban transport.”

– Rekha Gupta, Chief Minister, New Delhi

The policy puts Delhi among India’s strongest states and leads pushes towards electric mobility.

The success of the Delhi EV Policy 2026 will depend on how quickly charging infrastructure expands and whether consumers and commercial fleet operators embrace the transition.

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