The Delhi government has limited new vehicle registrations to electric three-wheelers (e-3Ws) by January 1, 2027, and electric two-wheelers (e-2Ws) by April 1, 2028, as part of the draft Delhi Electric Vehicle (EV) Policy 2026.

Stakeholders can share their feedback within 30 days of notification of this order.

The policy proposes that fleet aggregators and delivery service providers must not induct conventional internal combustion engine vehicles, including four-wheelers (4Ws), light commercial vehicles, 4Ws light goods vehicles (N1 category up to 3.5 Ton), and 2Ws. However, they may induct Bharat Stage-VI emission-standard 2-wheelers into the existing fleet up to December 31, 2026.

Under the draft policy, schools must maintain an electric fleet of buses of up to 10% within two years of this order’s issuance, up to 20% within 3 years, and up to 30% by March 31, 2030.

It also proposes that all hired/leased government vehicles, except for emergency vehicles and exempted vehicles, must be electric.

Under the draft policy, the Delhi Transport Corporation must only induct new intrastate buses that are electric. However, the Corporation can replace EV buses with cleaner technologies, such as hydrogen-fuelled buses.

Additionally, it proposed that all new N1 trucks purchased/leased/hired by departments/autonomous bodies/corporations/boards, and similar institutions under the Delhi government be EVs.

Under the policy, the Delhi government has imposed a cap of ₹225,000 (~$2,414.97) on the price of e-2Ws.

Incentives

The Delhi government has proposed issuing incentives to promote e-2Ws, including up to ₹30,000 (~$322) and ₹10,000 (~$107)/kWh, within one year of this policy’s issuance.

From the second year, the incentive to promote e-2Ws has been proposed to be reduced to ₹6,600 (~$71)/kWh, with a maximum of ₹20,000 (~$215). From the third year onwards, the incentive to promote e-2Ws will be ₹3,300 (~$35)/kWh, up to a maximum of ₹10,000 (~$107).

The government will also issue up to ₹50,000 (~$537) to replace old CNG e-3Ws or buy new e-3Ws for the first year, up to ₹40,000 (~$429) for the second year, and up to ₹30,000 (~$322) from the third year onward.

Under the draft policy, incentives can also be availed for e-4Ws of up to ₹100,000 (~$1,074) in the first year, up to ₹75,000 (~$805) in the second year, and ₹50,000 (~$537) from the third year onward.

The government has also proposed incentives for scrapping EVs, up to ₹10,000 (~$107) for e-2Ws, ₹25,000 (~$268) for e-3Ws, ₹100,000 (~$1,074) for e-4Ws, and ₹50,000 (~$537) for e-4Ws goods carriers.

To qualify for the scrapping incentives, all new EVs must be purchased within six months of the certificate of deposit being issued.

Exemptions
All EVs will be granted 100% exemption from road tax and registration fees at the time of vehicle registration. EVs with ex-showroom prices of up to ₹3 million (~$32,207) will be granted a 100% exemption from road tax and registration fees, and a 50% exemption for strong-hybrid EVs.

Charging and Battery Swapping

To avail support for the development of charging and battery-swapping infrastructure, the Delhi government will formulate plans for such infrastructure under the Ministry of Heavy Industry’s PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) program.

Delhi Transco (DTL) will act as the nodal agency for the planning, coordination, and implementation of public EV charging and battery-swapping infrastructure in the NCT of Delhi.

Under the proposed responsibilities for DTL, it will aggregate demand, proposed locations, and load requirements for public EV charging and battery swapping infrastructure. It will also develop, notify, and periodically update standard operating procedures (SOPs) for the deployment and operation of public EV charging and swapping infrastructure.

It will also develop, operate, or integrate a dedicated digital portal, either under the PM E-Drive framework or as a Delhi government-specific platform, for end-to-end management of public EV charging and battery-swapping infrastructure.

DTL, along with the Power Department, must also plan, deploy, and monitor all public EV charging and battery-swapping stations in the NCT of Delhi.

DTL will assess present and future electricity load requirements arising from EV charging demand in the NCT of Delhi, and will ensure timely power procurement and seamless power supply through coordinated planning and implementation with the DISCOMs.

Battery Recycling

Under the draft policy, the Environment Department will ensure strict adhere by original equipment manufacturers (OEMs) and other obligated entities to all applicavle provision of the Battery Waste Management Rules, 2022. It will also entail adherence to extended producer responsibility (EPR) reporting and environmentally sound management of waste batteries.

It also proposed that the Delhi Pollution Control Committee facilitate the deployment of battery collection centre cross the NCT of Delhi under a public-private partnership with authorized recyclers and other eligible entities.

DPCC will also issue the SOPs for OEMs and other obligated entities for the safe collection, storage, transportation, and transfer of waste batteries to authorized recyclers or producers’ responsibility organizations.

Additionally, OEMs must submit periodic reports on EPR target compliance and battery traceability to the DPCC periodically.

The government has also proposed promoting a battery traceability-enabled ecosystem based on unique battery identifiers to support battery refurbishment, safe second-life use, and sound recycling.

Land Identification

Urban local bodies and other land-owning agencies must identify suitable land parcels for deploying public EV charging and battery-swapping infrastructure. They will extend necessary support to DTL for the planning, approvals, and implementation of such infrastructure.

The district magistrates, through the Revenue Department, will facilitate the identification, aggregation, and availability of suitable land parcels for priority public infrastructure requirements, including electric vehicle charging and swapping infrastructure, as well as allied facilities.

EV Funds

The Transport Department will maintain a dedicated fund, including funds from the state budget, Central and State Government programs and grants, the air ambiance fund, the environment compensation charge, the PM E-DRIVE program, cess, taxes, and any other approved sources.

According to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard, EV sales in India reached 696,769 units in the first quarter (Q1) of 2026, an increase of over 35.5% year-over-year against the 514,198 units. EVs account for 9% of overall automobile sales, which totaled 7,889,101 units in Q1 2026.

Recently, the Ministry of Heavy Industries amended certain provisions of the PM E-DRIVE program, reducing incentives for electric two-wheelers and three-wheelers.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.