Delhi's new Electric Vehicle (EV) Policy 2.0, set to take effect from July 1, 2026, is expected to significantly reshape the automotive market, creating clear winners and losers among manufacturers. Brokerages identify Tata Motors Passenger Vehicles (TMPV), Mahindra & Mahindra (M&M), and Ather Energy as key beneficiaries, while Eicher Motors (Royal Enfield) and Hero MotoCorp appear most vulnerable.
Policy Overview and Transition Timeline
The Delhi EV Policy 2.0 outlines a comprehensive transition, targeting a complete shift to electric three-wheelers by January 2027 and electric two-wheelers by April 2028. Other vehicle categories will see a staggered transition. The policy will remain applicable until March 31, 2030, with a substantial investment of Rs 15,000 crore over FY27-30. This includes Rs 7,000 crore for EV purchase incentives and Rs 8,000 crore dedicated to developing charging infrastructure and offering tax concessions.
Key Beneficiaries of the New Policy
Several companies are well-positioned to capitalize on the policy's push for electrification:
- Ather Energy: As a pure-play EV two-wheeler OEM, Ather is seen as a primary gainer. Its strategy to expand beyond South India and the upcoming EL platform targeting the mass market segment are expected to fuel its growth.
- Mahindra & Mahindra (M&M): M&M is expected to benefit significantly through its passenger vehicle EV portfolio. Its EV sales already constitute 31% of its total PV sales in Delhi for FY27 YTD.
- Tata Motors Passenger Vehicles (TMPV): TMPV has also seen a rise in its EV mix in Delhi, from 14% in FY26 to 22% in FY27 YTD, indicating strong growth potential.
- Tata Motors Commercial Vehicles (TMCV): Incentives for electric commercial vehicles and investments in charging infrastructure are expected to support EV adoption in the CV segment, benefiting TMCV, which has a 5.5% EV LCV mix in Delhi for FY27 YTD.
- Suppliers: Companies like Sona BLW Precision Forgings (Sona Comstar), Motherson Sumi, and Uno Minda, with their exposure to EV components, are also viewed positively.
Companies Facing Potential Headwinds
Conversely, some established players are likely to face challenges due to their current market positioning:
- Eicher Motors (Royal Enfield): Royal Enfield appears particularly vulnerable due to its heavy reliance on the domestic market, high exposure to motorcycles, and a very low potential for EV mix. The policy, coupled with CAFE norms for EV two-wheelers, could significantly impact its sales in Delhi.
- Hero MotoCorp: Similar to Eicher Motors, Hero MotoCorp's domestic-heavy franchise and substantial exposure to the motorcycle segment make it susceptible to volume losses as the market shifts towards EVs.
Brokerages note that TVS Motor and Bajaj Auto are comparatively better insulated. This is attributed to their higher export exposure and rapidly expanding electric two-wheeler franchises, alongside growing presence in electric three-wheelers.
"Ather Energy being a pure-play EV 2W OEM is one of the key beneficiaries, while incumbents may lose volumes. In particular, Royal Enfield may be more impacted due to this policy due to its higher Delhi exposure and very low EV mix potential," noted Nomura India.
While the policy promises a greener future for Delhi's transport, the availability of sufficient EV manufacturing capacity by 2027 remains a key concern for some analysts.