The Delhi government is preparing to introduce a new electric vehicle policy that could make electric and hybrid cars more affordable for buyers in the capital. The proposed policy, expected to be announced during the upcoming Budget session of the Assembly, aims to accelerate the adoption of cleaner vehicles and reduce pollution levels in the city.
Officials said the upcoming EV Policy 2.0 may extend the existing exemption on road tax and registration fees currently available for electric two-wheelers, three-wheelers, and e-rickshaws to electric cars as well. The government is also considering offering the same benefits to strong hybrid electric vehicles and plug-in hybrid electric vehicles priced up to ₹20 lakh (ex-showroom).
Delhi Chief Minister Rekha Gupta had earlier indicated that the new policy would be announced during the Budget session. She said the government is consulting various stakeholders to frame a policy that could transform transportation in the city while encouraging participation from the private sector.
If approved by the Cabinet, the new policy is expected to be implemented in the financial year 2026–27.
According to officials, the main goal of the policy is to encourage residents to shift from petrol and diesel vehicles to cleaner alternatives. Currently, most electric cars in the market are priced above ₹15 lakh, which has limited their wider adoption. By extending tax benefits and potential incentives to electric and certain hybrid vehicles, the government hopes to make them more accessible to buyers.
However, details such as the number of vehicles eligible for the subsidy and the duration of the scheme are yet to be finalised.
Some experts have suggested that the government should focus more on improving infrastructure rather than offering subsidies for private vehicles. Transport expert Anil Chikkara said incentives should be directed toward building more charging stations and strengthening public transport systems so that more people choose shared mobility, which could help reduce congestion and vehicular pollution.
The draft policy also proposes additional incentives for certain segments. One proposal includes a subsidy of ₹12,000 per kWh, up to ₹36,000, for electric two-wheelers purchased by women residents of Delhi who hold valid driving licences. The benefit may be offered to up to 10,000 buyers.
Another proposal under consideration is easing restrictions on electric goods vehicles. Electric LN and N1 category vehicles could be exempted from no-entry timing rules and idle parking restrictions on selected roads. N1 vehicles refer to light goods vehicles with a gross vehicle weight of up to 3.5 tonnes, while LN vehicles are three-wheeled goods carriers.
Officials also said the government is considering the creation of Special Mobility Zones in parts of the city. These areas—likely to include tourist locations, hospitals, and heritage sites—may allow only electric vehicles in order to reduce air and noise pollution.
Delhi’s current EV policy was introduced in 2020 and has been extended multiple times after its initial expiration in 2023. The existing policy is set to expire later this month, prompting the government to prepare an updated framework aimed at expanding the adoption of electric mobility in the capital.
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