Shares of prominent electric two-wheeler manufacturers, including Ola Electric Mobility Ltd and Ather Energy Ltd, experienced a notable surge in Tuesday's trading. Ola Electric's stock climbed 11.21 percent to reach a daily high of Rs 44.95, while Ather Energy recorded a 5.57 percent gain, hitting a fresh 52-week high of Rs 1,142.80. Traditional automakers Bajaj Auto Ltd and TVS Motor Company Ltd also saw their shares trade higher.
The rally was triggered by the Delhi Cabinet's recent approval of the Electric Vehicle (EV) Policy 2026-2030, which boasts a substantial budgetary allocation of Rs 15,000 crore. This new policy is slated to take effect from July 1, 2026, and will remain valid until March 31, 2030. Its primary objective is to accelerate the adoption of electric mobility across the city through a carefully phased transition.
Under the proposed policy, Delhi will cease the registration of new petrol and CNG-powered two-wheelers from April 2028. Furthermore, starting January 2027, only electric auto-rickshaws will be permitted for registration in the capital. The policy also outlines various incentives for electric vehicles and places a strong emphasis on significantly expanding the city's EV charging infrastructure.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, commented on the development, stating, "The Delhi Cabinet's approval of the EV Policy 2026-2030 is undoubtedly a positive catalyst for EV companies." Bathini suggested that investors with a medium- to long-term outlook might consider adding Ather Energy to their portfolios.
Regarding Ola Electric, Bathini acknowledged the stock's sharp rebound but cautioned that it remains suitable primarily for investors with a high-risk appetite. Market veteran Arun Kejriwal echoed sentiments about Ola Electric's recovery, noting that the pure-play EV firm has indicated advanced progress in its new cell technology. Kejriwal believes that continued advancements in cell development could provide Ola Electric with a significant competitive advantage.
Ravi Singh, Chief Research Officer at Master Capital Services, highlighted the intensifying competition within India's electric two-wheeler market. He suggested that TVS Motor and Bajaj Auto appear better positioned for long-term leadership. Singh attributed their strength to established dealership networks, trusted brand reputations, robust service infrastructure, and strong financial backing, which instills greater customer confidence during the transition to EVs. He specifically mentioned the strong growth of Bajaj's Chetak and consistent demand for TVS iQube.
Singh further elaborated on Ather Energy, recognizing its distinction for technology, premium quality, and superior product experience. He noted that Ather's new family scooter, Rizta, has helped the company broaden its customer base beyond young urban buyers. However, Singh pointed out that Ather still requires a larger scale and wider market reach compared to its more established competitors.
While Ola Electric continues its aggressive expansion and battery manufacturing plans, Singh noted ongoing concerns regarding the company's service quality, execution, and profitability. Overall, he concluded that traditional players currently offer more stability, while Ather remains the strongest innovation-driven brand in the EV sector.