Delhi May Pay You ₹50,000 to Turn Your Old Car Into an EV Delhi Plans ₹50,000 Subsidy to Convert Old Petrol, Diesel Cars Into EVs

The Delhi government is considering a new financial incentive to encourage owners of older petrol and diesel vehicles to convert them into electric vehicles, rather than scrapping them. The proposal is part of the capital’s forthcoming EV Policy 2.0 and is aimed at reducing vehicular pollution while accelerating the shift to cleaner transport. Officials familiar with the draft policy said the Transport Department is weighing a subsidy of ₹50,000 for the first 1,000 vehicles that undergo electric retrofitting. The plan is still under review and will require Cabinet approval before it can be rolled out.

What the Initiative offers

The initiative is designed to offer a practical alternative to vehicle owners whose cars are no longer allowed to operate on Delhi’s roads due to age restrictions. At present, diesel vehicles older than 10 years and petrol vehicles over 15 years are barred from plying in the city, following directions from the National Green Tribunal and the Supreme Court. Owners of such vehicles face penalties or impoundment, leaving them with limited options—either scrapping the vehicle at an authorised facility or selling it outside Delhi after obtaining a no-objection certificate.

According to a senior official, the high and often unpredictable cost of retrofit kits has been a major deterrent. These kits vary significantly depending on the vehicle model, making the conversion process financially unviable for many owners. The proposed subsidy, officials believe, could help bridge that gap and make retrofitting a more realistic choice, especially for people who want to continue using their existing vehicles for limited or occasional purposes.

The move is expected to be particularly appealing to owners of premium and luxury cars. Officials noted that people who invested heavily in high-end vehicles such as Mercedes-Benz or BMW models are often reluctant to scrap them for marginal returns. By supporting retrofitting, the government hopes to encourage the reuse of these vehicles instead of pushing them prematurely to scrapyards.

How does Retrofitting work?

Retrofitting, which involves replacing a vehicle’s internal combustion engine with an electric drivetrain and battery system, is not a new concept in Delhi. Previous attempts to streamline the process ran into challenges, largely due to cost concerns and model-specific technical constraints. Issues such as compatibility, gearbox requirements and certification have limited large-scale adoption so far.

The proposed incentive forms part of a broader set of measures outlined in the draft EV Policy 2.0. One of the key proposals is a sharp increase in funding for research and development—from ₹5 crore to ₹100 crore—focused on emerging technologies in battery cells and charging infrastructure.

Two-wheeler EVs

The government is also targeting a significant expansion of electric two-wheelers in the city, with plans to increase their number from around five lakh to 12 lakh in the coming years. Officials estimate that with stronger policy support, Delhi could achieve up to 70% electric penetration in the new two-wheeler segment within three years. Other recommendations under consideration include raising incentives for battery swapping stations, including battery costs. The draft policy also proposes introducing a safety star-rating system for e-rickshaws and e-carts, many of which still rely on lead-acid batteries despite being fully electric.

Former Transport Department official Anil Chhikara offered a cautious assessment of the proposal, noting that retrofitting may not suit all users. He pointed out that conversion could be beneficial for people who use their vehicles sparingly, but its feasibility would depend on factors such as vehicle type, kit compatibility and whether the conversion requires a gearbox.

The policy also proposes additional purchase incentives for buyers who submit a valid scrapping certificate for an end-of-life vehicle from an authorised facility, reinforcing the government’s broader push towards cleaner mobility and responsible vehicle disposal. If approved, the retrofit subsidy could mark a shift in how Delhi approaches ageing vehicles—moving from a scrappage-first approach to one that prioritises reuse and cleaner conversion where possible.

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