Delhi EV Policy 2.0 Offers Big Tax Relief for Buyers

Follow Us

The Delhi Government has introduced the Draft Delhi Electric Vehicle Policy 2.0 (2026–2030) to control rising air pollution in the city. Vehicles are responsible for nearly 23% of Delhi’s winter pollution, so this policy focuses on promoting cleaner transport options. The government has planned a budget of ₹3,954.25 crore for this, covering incentives, scrapping benefits, and charging stations. The policy will be active till March 31, 2030, and people can share their feedback until May 10, 2026.

Tax Benefits and Incentives for Buyers

To make electric vehicles more affordable, the policy offers a full exemption on road tax and registration fees for EV cars priced up to ₹30 lakh. However, cars priced above ₹30 lakh will not get these benefits, keeping the focus on budget-friendly vehicles. Strong hybrid cars under ₹30 lakh will also get a 50% tax relief.

The policy also gives extra benefits if buyers scrap their old petrol or diesel vehicles. People can get up to ₹1 lakh for electric cars, ₹50,000 for goods vehicles, ₹25,000 for three-wheelers, and ₹10,000 for two-wheelers. This move aims to remove old polluting vehicles from the roads. For those who don’t have a vehicle to scrap, the government will provide direct subsidies through DBT. Electric two-wheelers can get up to ₹30,000 in the first year, while electric autos and goods carriers will also receive benefits that reduce over time to encourage early purchase.

Ban on Petrol Vehicles and Future Plans

The policy also sets deadlines to stop new petrol and diesel vehicles. New registrations of petrol/diesel three-wheelers will be banned from January 1, 2027, and two-wheelers from April 1, 2028. Delivery companies will not be allowed to add petrol or diesel two-wheelers after December 2026.

To support this shift, Delhi plans to increase charging stations from about 9,000 to 36,000 by 2030. The government also plans to introduce 11,000 electric buses by 2028 and promote EV use in public and school transport.This new policy comes after delays in subsidy payments under the earlier scheme. After action by the Delhi High Court, pending payments are now being cleared, helping rebuild trust among buyers.