Delhi Govt Approves New EV Policy: Full Tax Exemption for Electric Cars Under ₹30 Lakh
The Delhi government has approved a new electric vehicle (EV) policy, granting 100% exemption on road tax and registration fees for all electric cars with an ex-showroom price of ₹30 lakh or less registered in the national capital. The policy was cleared by the Delhi Cabinet on Monday and will come into effect from July 1, 2026.
Under the policy, buyers of electric two-wheelers will receive a subsidy of ₹30,000 in the first year, ₹20,000 in the second year, and ₹10,000 in the third year. For electric three-wheelers, the incentives are set at ₹50,000, ₹40,000, and ₹30,000 for the first, second, and third years respectively. Buyers of N1 category electric trucks can avail a purchase incentive of up to ₹1 lakh.
The policy also includes a phase-out plan for conventional fuel vehicles. From January 1, 2027, only electric autorickshaws will be registered in Delhi, while registration of new petrol and CNG two-wheelers will be phased out, with only electric two-wheelers permitted from April 1, 2028.
Chief Minister Rekha Gupta announced that approximately ₹15,000 crore will be invested over the next four years to promote electric mobility and reduce vehicular pollution. She described the policy as a major step toward making Delhi a pollution-free city by March 31, 2030.
To encourage the transition, the policy provides a scrapping incentive of ₹1 lakh for owners of BS-IV or older four-wheelers who scrap their vehicles and switch to electric vehicles. No subsidy will be provided for hybrid vehicles. A dedicated online portal will be developed for applicants to claim EV-related incentives.
The government said the policy also aims to expand charging infrastructure and vehicle scrapping facilities to accelerate the adoption of electric vehicles across the city.
