The Delhi government is preparing to introduce Electric Vehicle Policy 2.0, outlining a broader incentive framework to accelerate the city’s transition to electric mobility. The existing EV policy, which was due to expire in 2025, has been extended until March 2026 or until the revised policy is officially notified.
Higher incentives for electric two-wheelers
Electric two-wheelers are the central focus of the proposed policy. The draft recommends an incentive of ₹21,000 per electric two-wheeler, while women buyers may receive ₹30,000 per vehicle to encourage higher participation. The number of vehicles eligible for incentives could be capped at 1 lakh units.
The government is also proposing to increase its e-two-wheeler adoption target from 5 lakh to 12 lakh vehicles, reflecting a stronger emphasis on affordable and high-volume EV segments.
Retrofitting, scrappage, and four-wheeler incentives
In a first-of-its-kind initiative, the policy proposes a ₹50,000 incentive for retrofitting petrol or diesel cars into electric vehicles, applicable to the first 1,000 conversions. The government is expected to invest in research and engage specialists to develop the retrofitting ecosystem.
The proposal also links EV adoption with scrappage incentives for old two-wheelers, three-wheelers, and light commercial vehicles to phase out polluting vehicles.
For four-wheelers, the policy recommends reintroducing subsidies for private electric cars priced below ₹25 lakh, with incentives of ₹10,000 per kWh, capped at ₹1 lakh per vehicle, for the first 27,000 cars. An interest subvention scheme is also proposed, under which the government would cover 5% of loan interest for eligible buyers.
Focus on manufacturing and R&D
On the supply side, Delhi EV Policy 2.0 places emphasis on local manufacturing of EV components, offering incentives aligned with the Make in India initiative. The policy also proposes expanding the R&D corpus from ₹5 crore to ₹100 crore to support innovation in batteries, charging infrastructure, and EV technologies.
