Delhi EV Policy 2.0 Draft: No Road Tax For Cars Up To ₹30 Lakh, Ban On Petrol 2-Wheelers

The Delhi government has released the draft electric vehicle (EV) policy 2026-2030, laying out a roadmap to fast-track adoption of electric mobility in the capital, backed by incentives, regulatory measures, and a push to build charging infrastructure.

Released by the transport department’s EV cell, the draft policy will be open for public feedback for 30 days before it is finalised and notified.

Building on the previous policy, the new policy focuses on increasing EV adoption across key segments, while also improving charging infrastructure and making electrification rules stricter.

The development comes amid rising air pollution concerns in the national capital. According to the draft, vehicular emissions account for nearly 23% of Delhi’s winter pollution, making transport electrification a critical priority.

Two-wheelers, which make up about 67% of the city’s vehicle base, have been identified as a key segment, alongside high-usage categories such as three-wheelers and commercial vehicles.

Key Proposals Under The Draft EV Policy

Under the draft policy, the government has proposed a phased direct benefit transfer (DBT) framework under which subsidies will gradually decline over time.

Electric two-wheeler (E2W) buyers can get a subsidy up to ₹30,000 in the first year from the notification of the policy, ₹20,000 in the second year, and ₹10,000 in the third. Electric auto-rickshaws will be eligible for incentives of up to ₹50,000 in the first year, while electric goods carriers in the N1 category can receive up to ₹1 Lakh initially.

To accelerate the shift away from polluting vehicles, the policy has also proposed scrappage-linked incentives.

Buyers scrapping BS-IV or older vehicles can receive ₹10,000 for two-wheelers, ₹25,000 for three-wheelers, up to ₹1 Lakh for electric cars priced under ₹30 Lakh, and ₹50,000 for goods carriers.

The draft policy also proposes a 100% exemption on road tax and registration fees for most EVs. However, electric cars priced above ₹30 Lakh will be excluded from these benefits. Electric cars priced up to ₹30 Lakh will continue to enjoy full exemptions till March 31, 2030. Strong hybrid EVs will receive 50% exemption on road tax and registration fees.

The draft policy has also proposed a ban on registrations of non-electric three-wheelers from January 1, 2027 and non-E2Ws from April 1, 2028.

Beyond incentives, the policy focuses on strengthening the EV ecosystem. It aims to expand charging networks, encourage battery swapping, and put systems in place for battery recycling and disposal to enable broader EV adoption.

Notably, while presenting the Delhi government’s Budget for 2026-27, CM Rekha Gupta had allocated ₹200 Cr for EV policy 2.0 to scale EV adoption to curb emissions and accelerate the city’s green transition.

First launched in 2020, Delhi’s EV policy has been extended multiple times until 2026.

The development comes a day after the Karnataka government, in a move in contrast to the Delhi government’s, removed tax exemptions on electric cars and introduced a lifetime road tax, making them more expensive.

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