Delhi’s EV Policy 2026: Incentives, Infrastructure and Impact 

Overview of the Policy (Scope, Targets, Timeframe

Delhi’s EV policy, originally notified in 2020, has been extended through March 2026. The government aims to position Delhi as a leader in electric mobility. The 2020 policy set ambitious goals, such as EVs accounting for 25% of all new vehicle registrations by 2024. While timelines shifted, the extension continues the original incentives and targets. In July 2025,  officials confirmed the extension until March 31, 2026, reaffirming  Delhi’s commitment to electrification and even setting long-term stretch goals of 100% EV adoption (over a few years) in select vehicle segments.  

This blog examines Delhi’s EV Policy across three key dimensions: 

• Incentives and regulatory support across vehicle segments 

• Charging infrastructure strategy for widespread accessibility 

• On-ground impact, implementation challenges, adoption  trends and governance learnings 

Incentives for EV Adoption 

Delhi offers generous financial and non-financial incentives across vehicle categories.  

Electric Two-Wheelers

For electric two-wheelers, the policy provides ₹5,000 per kWh of battery capacity (capped at ₹30,000 per bike). There is also a scrappage bonus of ₹5,000 for turning in an old petrol or CNG scooter when buying an EV. The policy required major delivery firms to convert 50% of their two-wheeler fleet by March 2023 (100% by 2025), supported by loans from the Delhi Finance Corporation to help meet these goals. 

Electric Three-Wheelers 

For electric three-wheelers (auto-rickshaws), Delhi’s policy grants a flat ₹30,000 purchase incentive per e-auto. Auto drivers also get a 5% interest subvention on vehicle loans and a ₹7,500 scrappage bonus for deregistering their old CNG auto. Crucially, permits for e-autos are treated favorably: new e-auto permits are issued on a first-come basis, and any retired CNG auto permit can be exchanged for an EV permit at no extra cost. This open-permit system encourages informal and last-mile transit drivers to switch to EVs without bureaucratic caps. 

Electric Carts and Rickshaws 

Small electric carts and rickshaws (e-goods carriers) are likewise incentivized. Buyers of e-rickshaws or e-carts get a ₹30,000 subsidy per vehicle. Those with advanced (ARIA-certified) batteries also receive 5% interest support. And owners scrapping old light goods carriers can claim up to ₹7,500 when registering an e-carrier. Notably, Delhi exempts these e-goods vehicles from certain traffic restrictions: EV goods carriers may park or ply in zones/time periods where older diesel LCVs are usually banned. 

Electric Four-Wheelers 

For electric four-wheelers, the original Delhi policy offered ₹10,000 per kWh of battery (up to ₹150,000) for the first 1,000 EV cars registered under the policy. In practice, that car subsidy was exhausted quickly and has not been extended for unlimited units. All EVs in Delhi – from bikes to buses – enjoy 100% waiver of road tax and registration fees during the policy period. This non-financial incentive alone can save buyers a large sum (Delhi had already waived taxes on EVs even before the policy). In sum, Delhi’s package bundles cash subsidies for batteries with big tax waivers and interest concessions. These incentives make EVs significantly cheaper to own in Delhi compared to petrol models, especially in the two- and three-wheeler segments. 

Support for Charging Infrastructure 

Delhi’s policy prioritizes charging accessibility, aiming for a public charging facility within 3 km of any location. The EV Charging Infrastructure Action Plan (2022–25) is committed to tens of thousands of chargers. For example, one report noted  Delhi already has approximately 2,452 public charging points and 234 battery-swap stations. By early 2026, the network had expanded to 9,000 public charging stations, with a target of 30,000 in the coming years.

To facilitate rollout, Delhi offers subsidies and amenities for charger installation and concessional land in public parking for private charging operators and explicitly subsidizes charger installation costs. Battery-swapping stations receive additional support, including 100% reimbursement of state GST on advanced batteries. Regulations mandate EV-ready infrastructure in new buildings, requiring 20% of parking spaces to be equipped with power conduits for chargers. The government is also working to lower electricity tariffs for EV charging, ensuring affordability and widespread adoption. 

Mandates & Public Fleets Electrification 

Delhi has used mandates and fleet procurement to drive EV demand. The policy directs the city to take the lead by greening its own fleet. All leased or hired government cars are to be converted to EVs within 12 months of the policy’s issue. The city has aggressively expanded its e-bus fleet, operating 3,535 electric buses out of 5,335 total by early 2026. Under the PM E-Drive program, Delhi is procuring 2,800 e-buses in Phase-1 (bringing the fleet to ~10,430) and has requested another 3,330 e-buses in Phase-2. The target is to reach 7,500 electric buses by the end of 2026 and 11,000 by 2028. 

Delhi’s public transport electrification is illustrated by the image below (a NUEGO electric bus that recently entered service). These e-buses, covering major routes and last-mile feeders, not only cut pollution but also set up a model for other cities. Similarly, Delhi’s auto-rickshaw sector is targeted: the government planned to phase out all CNG auto-rickshaws by 2025 in favor of e-autos (though that was deferred in the latest policy draft). Delivery and ride-hailing platforms are being urged to switch to e-2Ws and cabs, leveraging Delhi’s incentives to accelerate the transition. The overall aim is clear: public fleets, city vehicles, and even paratransit services must lead the EV transition, multiplying the impact of subsidies and demonstrating new technology on the roads. 

Policy Impact: EV Registrations, Sales and Charging Growth 

Delhi has emerged as one of India’s top EV markets. A government data summary for 2025 showed the city with an EV-to-ICE ratio of approximately 14%, meaning roughly 1 in 7 new vehicles registered were electric, compared to the national average of 8%. One analysis found Delhi’s EV share second only to Kerala’s in recent quarters. Since 2020, Delhi has registered over 86,000  EVs, with strong uptake in two-wheelers and three-wheelers and growing adoption of electric cars. Charging infrastructure has expanded rapidly, from a few hundred points in 2020 to approximately 9,000 by 2026. Fast-charging hubs are being set up at transit centers, parking lots, and metro stations, reducing range anxiety and supporting adoption.  
 
In sum, the policy’s impact data suggest Delhi is outperforming older state goals: it already meets or exceeds interim targets (e.g., 10% EV share in sales, as Transport Minister Gahlot noted on the action plan launch) and is on track to meet the policy’s major aims. 

Implementation and Governance 

To implement the EV policy, the Transport Department of Delhi is the nodal agency. The policy mandates the creation of a dedicated EV Cell within Transport Delhi, staffed with technical experts to coordinate implementation. A State Electric Vehicle Board oversees the strategy and reviews progress. Funding comes from several sources: the city has ring-fenced its Air Ambience Fund (pollution fines and related revenues) to subsidize EVs.  
 
New pollution-related charges (e.g., additional road tax on high-emission vehicles, congestion fees on cabs) were explicitly earmarked to refill the EV fund. Furthermore, all central FAME subsidies (for eligible vehicles) are redirected through Delhi’s scheme, and pending grants from the earlier Air Ambience Fund are being cleared by the transport department. Practically, subsidy payments have been a challenge: previous governments had accrued backlogs of incentive claims, which current authorities have promised to clear. 

For outreach and oversight, Delhi’s EV policy calls for public awareness campaigns and periodic policy reviews. The government tracks key metrics such as EV registrations, charger installations, pollution levels, and adjusts rules accordingly. By late 2025, a high-level committee including officials and experts was finalizing the next EV policy draft based on these results. Notably, Delhi has begun preparing policy “2.0” for implementation from FY2027 onward, reflecting lessons learned. For example, strengthening subsidy disbursal, incorporating a scrappage scheme, and even opening an “open database” of charging points. 

Challenges & Policy Adaptations 

Despite a strong vision, Delhi’s EV push has faced hurdles. One persistent issue was implementation delays: many buyers complained that promised subsidies took months to arrive, causing confusion and frustration. The new government pledged to streamline this by issuing “purchase stickers” for vetted buyers and automating claims. Infrastructure siting also posed challenges (hence the concessional location policy), as land in Delhi is scarce.  
 
Safety and regulatory clarity have been emerging issues: for example, Delhi’s plan to incentivize retrofitting old cars (at ₹50,000 per conversion) sparked industry debate in 2026, with automakers citing safety concerns. Policymakers note that while retrofits could help remove old polluting vehicles, the approach needs stricter standards to address those concerns. 

Air quality requirements have also pressured timelines. Delhi’s Supreme Court-mandated bans on older vehicles (petrol >15 years, diesel >10 years) mean many owners will either scrap or convert their ICE cars. The EV policy now dovetails with these rules: for instance, scrappage incentives were introduced so that owners of banned vehicles get a bonus to switch to EVs. To address e-waste and battery recycling, Delhi has started drafting rules (and even offering battery swapping trials). Each year’s budget or policy tweak has added new elements —e.g., doubling swap station incentives and adding interest subvention for loans. These adaptations show Delhi continuously refining its framework based on feedback from industry and civil society.  

Delhi in Context: National Goals and Lessons for Others 

Delhi’s EV penetration (14% in 2025) is among the highest nationwide, reflecting both strong policy incentives and people’s willingness to adopt new tech. The city also ranks second in public charging infrastructure after Maharashtra. Its aggressive charger-to-EV ratio target of 1:15 surpasses many state norms. Politically, Delhi’s leaders have extended and expanded the policy, signaling consensus on EVs as a solution to Delhi’s notorious air pollution. 

However, Delhi’s fiscal constraints and land scarcity differ from those of larger states. Some states like Maharashtra and  Karnataka have more generous budgets and industrial bases, and their targets can be even more ambitious (e.g., Maharashtra’s goal of 10% EV share in new sales by 2025 and Karnataka’s plan to electrify 100% of small cargo vehicles by 2030). Nationally, the EV mission also involves central incentives (FAME, tax breaks) that Delhi complements with its own schemes.  
 
Other cities can learn from Delhi’s integrated approach: combining purchase subsidies, charging network planning plus fleet mandates creates synergies. For instance, Delhi’s experience shows how important it is to waive road taxes and to involve local electricity regulators in tariff design. The capital’s efforts at single-window approvals and public data dashboards could be models for other cities. 

Final Thoughts 

Delhi’s current EV policy 2026 is a comprehensive program anchored on clear targets and generous incentives. It has driven measurable growth in EV adoption and infrastructure in the last two years, and the government has demonstrated political will to refine the policy further. While challenges remain, from execution bottlenecks to new tech issues like retrofitting, Delhi’s strategy offers valuable lessons. It shows that even a dense, high-pollution city can accelerate EV uptake through decisive policy, and that continual adaptation (as seen in Delhi’s upcoming “EV Policy 2.0”) is key to staying on track. Other states and cities seeking to ramp up EVs can study Delhi’s incentives, its public charging push, and its proactive fleet electrification, while also being mindful of Delhi’s unique context (cost of living, congestion, etc.) when replicating its approach.