Delhi Rolls Out Fresh EV Policy With Subsidies Up to Rs 1 Lakh and Full Road Tax WaiverAuto
1 Jul 2026, 3:09 pm (45 days ago)· 3

Delhi Rolls Out Fresh EV Policy With Subsidies Up to Rs 1 Lakh and Full Road Tax Waiver

Delhi's new Electric Vehicle Policy, in force from July 1, 2026 to March 31, 2030, offers tiered subsidies on electric two-wheelers, three-wheelers and trucks, a lifetime road tax and registration waiver for EVs priced up to Rs 30 lakh, and scrapping incentives of up to Rs 1 lakh.

Delhi's new Electric Vehicle Policy came into force on July 1, 2026, with the Rekha Gupta government issuing the official gazette notification on Wednesday. Valid until March 31, 2030, the policy is designed to reduce the capital's air pollution by progressively replacing petrol and diesel vehicles with electric ones. The Delhi Cabinet, chaired by Chief Minister Rekha Gupta, had cleared the EV Policy 2026 on June 29.

Eligibility Conditions

Claiming a subsidy under this policy requires meeting three core conditions. The buyer must be a Delhi resident, the vehicle must be purchased in Delhi, and it must also be registered in Delhi. Individual buyers as well as proprietorship firms, agencies and companies all qualify. The incentive will reach beneficiaries through Direct Benefit Transfer, via a mechanism notified by the Delhi Transport Department. Only models approved and listed by the designated committee will be eligible for subsidy benefits.

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Application Deadline and Disbursement Timeline

Buyers must apply for the purchase incentive within 30 days of the Registration Certificate (RC) being issued, through the Transport Department's digital portal. Once the application is filed, the subsidy will be disbursed within 60 days, subject to verification and fulfillment of all applicable requirements.

Electric Two-Wheeler Subsidy

Two-wheelers with an ex-showroom price at or below Rs 2.25 lakh are eligible for purchase incentives. The benefit tapers each year: a maximum of Rs 30,000 in the first year, Rs 20,000 in the second, and Rs 10,000 in the third.

Incentives for Electric Three-Wheeler Autos

The Delhi government wants to phase out CNG auto rickshaws from the city and replace them with electric ones. To encourage this, it is offering Rs 50,000 in the first year, Rs 40,000 in the second, and Rs 30,000 in the third for electric three-wheelers. E-autos with a battery capacity below 4 kWh will not be eligible for these incentives.

E-Truck Subsidy Structure

Subsidies for electric trucks are tiered by gross vehicle weight. Heavy e-trucks with a gross weight above 1.75 tonnes will receive Rs 1,00,000 in year one, Rs 75,000 in year two, and Rs 50,000 in year three. For e-trucks at or below 1.75 tonnes, the figures are Rs 50,000 in year one, Rs 37,500 in year two, and Rs 25,000 in year three.

Complete Lifetime Road Tax and Registration Exemption

All electric vehicles purchased and registered in Delhi during the policy period, with an ex-showroom price up to Rs 30 lakh, will be exempt from road tax and registration charges for their entire lifespan. Electric vehicles priced above Rs 30 lakh will receive no such exemption.

Scrap Your Old Vehicle and Earn a Bonus

The policy includes a scrapping incentive to make the switch to electric more financially compelling. Scrapping an old two-wheeler and buying a new electric two-wheeler earns Rs 10,000. Scrapping a three-wheeler brings Rs 25,000. Scrapping a car and buying a new electric car priced up to Rs 30 lakh comes with an incentive of Rs 1,00,000. This benefit is conditional: the scrapping of the old vehicle and the purchase of the new electric one must happen together for the incentive to be paid.

Questions & Answers

When did Delhi's new EV Policy come into effect and how long will it last?
The policy took effect on July 1, 2026 and will remain active until March 31, 2030.
Who is eligible for EV subsidies under this policy?
The buyer must be a Delhi resident, the vehicle must be purchased and registered in Delhi, and the model must be on the committee-approved list.
What is the deadline to apply for the subsidy?
Applications must be submitted within 30 days of the Registration Certificate (RC) being issued, through the digital portal.
How much subsidy is available on electric two-wheelers?
Two-wheelers priced at or below Rs 2.25 lakh ex-showroom get up to Rs 30,000 in year one, Rs 20,000 in year two, and Rs 10,000 in year three.
How much scrapping incentive is available for old cars?
Scrapping a car and buying a new electric car priced up to Rs 30 lakh earns a scrapping incentive of Rs 1,00,000.
Do electric vehicles above Rs 30 lakh get any road tax exemption?
No, electric vehicles with an ex-showroom price above Rs 30 lakh are not eligible for any road tax or registration fee exemption.
What is the battery condition for e-autos to qualify for the subsidy?
E-autos must have a battery capacity of at least 4 kWh. Those with less than 4 kWh will not be eligible.
Who approved Delhi's EV Policy 2026 and when?
The Delhi Cabinet, chaired by Chief Minister Rekha Gupta, approved the EV Policy 2026 on June 29.

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