Delhi policy delivers boost for EVs, blow to hybrids

Delhi on Monday unveiled an electric vehicle (EV) policy that favours battery electric vehicles (BEVs) over hybrids, mandates a phase-out of new petrol and diesel two-wheelers from April 2028, and three-wheelers and light commercial vehicles from January 2027, and limits full road-tax exemption to electric cars priced below ₹30 lakh.

- Manas Pimpalkhare & Ayaan Kartik

The policy was welcomed by EV makers and clean-mobility experts, with industry executives saying it could become a template for other states, and experts arguing it would accelerate the shift to zero-emission transport and help tackle Delhi’s chronic air pollution.

The policy, which will remain in force till FY30, also drops a proposal in the draft released in April to extend road-tax concessions to hybrids.

“The draft Delhi EV policy released for consultation in April had proposed a 50% road tax exemption for hybrid cars, but the provision was dropped after stakeholder consultations," Delhi transport secretary-cum-commissioner Niharika Rai said in a joint press briefing on Monday that was also attended by Delhi chief minister Rekha Gupta and ministers from the state's cabinet.

Mint reported in March this year that the Delhi government may make a U-turn on incentives for hybrid vehicles.

Announcing the policy on Monday, Gupta said ₹15,000 crore worth of investments will be made towards incentives and setting up of charging infrastructure. Rai added that 32,000 public EV chargers will be set up during the runtime of the policy.

The policy will provide purchase incentives for electric two-wheelers, three-wheelers and small trucks, chief minister Gupta said during the conference. According to officials, electric two-wheelers will get a subsidy of 30,000 in the first year of the policy, ₹20,000 in the second, and ₹10,000 in the third.

Similarly, electric threewheelers will get a subsidy of ₹50,000 in the first year, ₹40,000 in the second, and ₹30,000 in the third. Light commercial vehicles (NI category) will get incentives of ₹1,00,000, transport commissioner Rai said.