Delhi Electric Vehicle Policy Promotes EV Adoption

The Delhi government has recently approved a transformative Electric Vehicle (EV) Policy designed to boost the uptake of electric two-wheelers. This initiative includes attractive purchase incentives, mandatory EV-only registrations starting from 2028, and a substantial expansion of charging facilities.

Attractive Incentives for Electric Two-Wheelers

The new policy introduces incentives worth Rs 30,000 for electric two-wheelers in the first year, followed by Rs 20,000 in the second year and Rs 10,000 in the third year. From April 1, 2028, only electric two-wheelers will be permitted for new registrations in Delhi, while existing petrol and diesel vehicles will still be operable under the current guidelines.

Benefits for Electric Two-Wheeler Manufacturers

This initiative is poised to significantly benefit electric two-wheeler manufacturers like Ather Energy, Ola Electric, TVS Motor Company, Bajaj Auto, and Ultraviolette Automotive. Recognised as one of the largest two-wheeler markets in the country, Delhi’s policy ensures long-term visibility for electric vehicle adoption.

Industry Leaders Respond to the Policy

Following the announcement, Tarun Mehta, cofounder and CEO of Ather Energy, stated that Delhi has introduced one of the most important city-level EV policies in India. He noted that the combination of incentives, gradual electrification mandates, and enhanced charging infrastructure establishes a robust foundation. If Delhi evolves into a predominantly EV market, it could set a benchmark for the nation.

Confidence in the EV Ecosystem

Mehta pointed out that long-term policies instil confidence within the EV ecosystem, encouraging ongoing investment and product innovation. Narayan Subramaniam, CEO and Head of Design at Ultraviolette Automotive, highlighted that the policy’s agnostic incentives empower consumers to select products based on their preferences for range, technology, performance, and design. He emphasised that the focus on charging infrastructure acknowledges the essential role of energy in the EV landscape.

Scrappage Incentives and Enhanced Air Quality

Anurag Mehrotra, Managing Director of JSW MG Motor India, remarked that the proposed scrappage incentives aim to facilitate the transition from older polluting vehicles to electric alternatives, which will further enhance air quality and lessen reliance on crude oil imports.

Incentives for Other Electric Vehicles

In addition to two-wheelers, the policy extends to electric three-wheelers and commercial vehicles, offering subsidies of up to Rs 50,000 for electric three-wheelers in the first year and Rs 1 lakh for N1 commercial trucks. Scrappage incentives for older BS IV vehicles have also been introduced.

Expansion of Charging Infrastructure

The Delhi government aims to install 32,000 charging points over the next four years, supported by the PM eDrive scheme and the state government. The policy, which has been approved by the cabinet led by Rekha Gupta, is anticipated to take effect on July 1 and remain in force until March 31, 2030, with an allocated budget of Rs 15,000 crore for its execution.

Addressing Pollution Issues

According to Transport Commissioner Niharika, commercial goods vehicles contribute to 33% of Delhi’s pollution, with two-wheelers and three-wheelers accounting for an additional 46%. This policy prioritises these vehicle types to combat pollution more effectively.

Industry Reactions to the Policy

While Ola Electric has refrained from commenting on the final version of the policy approved on Monday, founder Bhavish Aggarwal had previously embraced the draft of the Delhi EV Policy in April, describing it as the start of the end for internal combustion engine vehicles.