Delhi EV Policy 2026 Draft Pushes ICE Two-Wheeler Ban, with Incentives for EVs

• Electric 2Ws with ex-factory price up to Rs. 2.25 lakh will qualify for purchase incentives
• Subsidy falls year by year, starting at Rs. 10,000 per kWh up to Rs. 30,000 in Year 1
• From 1 April 2028, only electric two-wheelers will be permitted for new registration in Delhi

Delhi government has put out its draft Electric Vehicle Policy 2026–2030 for public feedback combining direct financial support with a firm long-term registration mandate. Two-wheelers account for around 67 percent of Delhi’s total vehicle stock, and now the draft explicitly identifies their rapid electrification as critical for cutting vehicular emissions in the city. No phase-out based on cubic capacity, no cognisance on carbon emissions, just a straight ban on ICE suggestively leaving manufacturers wondering of this very large two-wheeler market.

This push is backed by an incentive structure. The draft says electric two-wheelers with an ex-factory price not exceeding Rs. 2.25 lakh will be eligible for support. In Year 1 from the date of notification the incentive is set at Rs. 10,000 per kWh capped at Rs. 30,000. In Year 2, this drops to Rs. 6,600 per kWh capped at Rs. 20,000. In Year 3, it falls again to Rs. 3,300 per kWh capped at Rs. 10,000. This stepped structure suggests the sooner a buyer moves, the stronger the support is likely to be. The phased reduction in subsidy shows the government expects the segment to become less dependent on support as volumes improve.

The draft also adds a scrapping incentive for electric two-wheelers proposing Rs. 10,000 for buyers who scrap a Delhi-registered BS-IV or older two-wheeler and then purchase a new electric vehicle under the policy within six months of receiving the Certificate of Deposit from an authorised scrapping facility. Be advised the amount is not very large on its own, but it adds another nudge for existing petrol two-wheeler owners who may already be considering a change.

Beyond direct incentives, the draft continues the 100 percent exemption from road tax and registration fees for electric vehicles registered in Delhi during the policy period subject to the policy’s conditions. Lower acquisition support, a scrappage bonus in some cases and tax-free registration together make the policy more buyer-facing.

The draft highlights that from 1 April 2028, only electric two-wheelers will be permitted for new registration in the NCT. Incentives can encourage, but a date like this reshapes market planning for manufacturers, dealers and buyers alike. Electric two-wheelers are being placed on the path to become the default format for new registrations in NCT.

The draft also says OEMs operating in Delhi will have to ensure adequate and timely supply of electric vehicles during the policy period. It further proposes that every OEM dealer should deploy at least one public EV charging station with a minimum of three charging points for two- and three-wheelers. Government of India also wants OEMs to stabilise EV costs to make them more affordable for Delhi residents.

On infrastructure front, the draft gives Delhi Transco Limited a central role in planning, coordination, deployment and monitoring of public charging and battery swapping infrastructure. It mentions a single-window clearance system and a digital portal for approvals, onboarding and reporting.