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Delhi EV Policy 2026: Road Tax Waived, Subsidies & Petrol/CNG Bans for New Vehicles

· · 3 min read

The Delhi Cabinet approved the EV Policy 2026, offering 100% road tax and registration fee waivers on electric vehicles. It introduces purchase and scrappage incentives while phasing out new petrol and CNG auto-rickshaw and two-wheeler registrations.

The Delhi Cabinet has officially approved the Delhi EV Policy 2026, setting an ambitious roadmap for electric mobility in the capital. This new policy, effective until March 31, 2030, aims to significantly boost electric vehicle (EV) adoption through a comprehensive package of subsidies, tax exemptions, and scrappage benefits. Crucially, it also introduces phased restrictions on the registration of new petrol and CNG vehicles in certain categories.

With an investment exceeding ₹7,000 crore over the next four years, the government is committed to transitioning Delhi's vehicle fleet towards zero-emission battery electric vehicles (BEVs). This outlay includes substantial funds for purchase and scrappage incentives, development of charging infrastructure, and revenue foregone through tax waivers.

Significant Financial Benefits for EV Buyers

One of the most immediate advantages for prospective EV owners is a 100% waiver on road tax and registration charges. For electric passenger cars, this exemption applies to models priced up to ₹30 lakh (ex-showroom).

Direct Purchase Incentives

The policy offers direct purchase incentives to encourage early adoption, with higher amounts available in the first year:

  • Electric scooters and motorcycles: Up to ₹30,000
  • Electric auto-rickshaws: Up to ₹50,000
  • Electric mini trucks and small commercial goods vehicles: Up to ₹1 lakh

Dealers are mandated to inform customers about incentive eligibility at the time of booking. These incentives will be directly transferred to beneficiaries' bank accounts.

Scrappage Benefits for Older Vehicles

To further accelerate the shift, the policy provides incentives for scrapping older, polluting vehicles and replacing them with EVs:

  • Old two-wheeler: ₹10,000
  • Auto-rickshaw: ₹25,000
  • Private cars: ₹1 lakh
  • Light commercial goods vehicles: ₹50,000
  • Gramin Sewa vehicles: ₹15,000

Phased Restrictions on New Petrol and CNG Vehicles

The Delhi EV Policy 2026 introduces strict timelines for phasing out the registration of new internal combustion engine (ICE) vehicles in specific segments:

  • From January 1, 2027: Only electric passenger auto-rickshaws, electric goods-carrying three-wheelers, and electric small commercial vehicles (mini trucks, last-mile delivery vans) will be eligible for new registration in Delhi.
  • From April 1, 2028: The registration of new petrol and CNG scooters and motorcycles will cease. After this date, buyers of new two-wheelers must opt for an electric model.

It is important to note that these restrictions apply only to new registrations. Existing petrol or CNG vehicles can continue to be used by their owners.

Support for Commercial Transport and School Buses

The policy also addresses commercial transport and public services:

  • The first 1,000 medium-sized electric trucks purchased within three months of the policy's notification will receive a 10-year exemption from Delhi's 'No Entry' restrictions, promoting cleaner freight logistics.
  • Schools are required to electrify their bus fleets, targeting 10% electric within two years, 20% after three years, and 30% by March 31, 2030.

Expanding Charging Infrastructure

To alleviate range anxiety and support the growing EV fleet, the Delhi government plans to install more than 30,000 charging points across the city during the policy period. This expansion aims to ensure widespread accessibility to charging facilities, a critical factor for successful EV adoption.

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