Delhi EV Policy 2.0: ₹1 Lakh Subsidy + Full Tax Waiver for Pure EVs – A Game-Changer for Clean Mobility

Delhi’s new EV Policy 2.0 links up to ₹1 lakh incentive to scrapping 10-year-old diesel or 15-year-old petrol cars, offers 100% road tax waiver till 2030, and keeps hybrids out to push pure electric adoption.

Delhi has just taken one of the most decisive steps yet in India’s electric mobility journey. With the launch of EV Policy 2.0 on March 24, 2026, the government has shifted from simple purchase subsidies to a smart, scrappage-linked model backed by ₹200 crore. This isn’t just another policy document, it’s a clear signal that the capital is serious about cleaning its air while making EVs genuinely affordable for ordinary citizens.

Game-Changing Incentives That Make EVs Irresistible

Under the new policy, buyers of electric cars priced below ₹15 lakh can now claim up to ₹1 lakh in direct benefit transfer, but only after scrapping an old BS-IV or older Delhi-registered petrol or diesel vehicle. Electric two-wheelers get a flat ₹10,000 incentive, three-wheelers (L5M category) receive ₹25,000, and even retrofitting old cars with certified EV kits qualifies for ₹50,000. On top of this, pure EVs up to ₹30 lakh enjoy 100% exemption on road tax and registration charges until March 2030. These benefits are capped for the first one lakh car buyers in the initial phase, ensuring the momentum stays strong from day one.

Scrappage Incentive: Finally Rewarding Those Ready to Retire Polluting Cars

What makes this policy truly forward-thinking is its direct link to vehicle scrappage. Owners who have loyally run their diesel cars for 10 years or petrol cars for 15 years, the standard end-of-life period under Delhi’s pollution control norms, now have a powerful financial reason to retire them. By mandating a scrappage certificate for the highest incentives, the government is actively accelerating the removal of high-emission vehicles from city roads. This isn’t tokenism. It directly rewards responsible citizens who have waited out the full lifespan of their older cars and are now ready to switch to clean electric alternatives.

Pure EV Focus: No Registration Relief for Hybrids, and Here’s Why It Makes Sense

In a clear and welcome stand, the Delhi government has chosen not to extend road tax and registration waivers to hybrids, strong hybrids or plug-in hybrids. Earlier drafts had floated the idea, but the final policy keeps the focus laser-sharp on pure battery electric vehicles. This decision sends a strong message: the government wants to eliminate fuel dependency entirely rather than settle for partial solutions. By reserving the biggest benefits for zero-emission pure EVs, Delhi is ensuring every rupee spent pushes the city faster towards its long-term goal of cleaner air and energy independence.

Massive Push on Charging Infrastructure and Public Transport

The policy doesn’t stop at purchase incentives. Every vehicle dealership in Delhi must now install at least one public charging station. The target is an ambitious 18,000 charging points by the end of 2026, supported by ₹320 crore for electrifying bus depots. On the public transport front, 6,130 new electric buses will join the fleet in FY2026–27, taking the total electric bus count to 12,000 by 2029. Battery recycling norms and faster Aadhaar-linked DBT payouts further show a mature, well-rounded approach.

Delhi EV Policy 2.0 isn’t just about numbers, it’s about vision. By cleverly combining scrappage rewards, massive tax relief, and pure-EV priority, the government has created a framework that actually moves the needle on pollution control while putting more electric vehicles on the roads than ever before. Other states would do well to watch and learn. For Delhi’s citizens tired of toxic air, this is genuinely good news worth celebrating.