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CM Rekha Gupta Announces Delhi EV Policy 2026 with Up to ₹1 Lakh Subsidy and Petrol Vehicle Phase-Out Plan

Delhi unveils major green mobility push offering direct EV subsidies, full road tax and registration fee waivers, scrapping incentives, and phased restrictions on new petrol vehicle registrations by 2028. 
Indian Masterminds Stories

New Delhi: Delhi Chief Minister Rekha Gupta has officially notified the Delhi Electric Vehicle (EV) Policy 2026, a major reform aimed at accelerating green mobility, reducing pollution, and phasing down internal combustion engine (ICE) vehicles in Delhi.

The policy, which came into effect on July 1, 2026, will remain valid until March 31, 2030, and is expected to generate significant investment while transforming the city’s transport ecosystem.

EV Subsidies Announced for Two-Wheelers, Three-Wheelers and Small Commercial Vehicles

Under the new policy framework, the government has introduced direct financial incentives to encourage EV adoption:

  • ₹30,000 subsidy for electric two-wheelers
  • ₹50,000 subsidy for electric three-wheelers
  • ₹1 lakh subsidy for N1 category small commercial vehicles (commonly known as ‘Chota Haathi’)

These subsidies aim to make EV ownership more affordable for both individual buyers and small business operators.

Read also: Delhi CM Rekha Gupta Launches ‘Our Monuments, Our Pride’ Heritage Scheme to Preserve 75 Monuments

Full Road Tax and Registration Fee Exemption for EVs

To further reduce upfront costs, the policy provides a complete waiver of road tax and registration fees for electric vehicles priced below ₹30 lakh.

This exemption is expected to significantly lower the total cost of EV ownership and boost adoption across all segments.

Petrol Vehicle Phase-Out Plan Begins with Future Registration Restrictions

While clarifying public concerns, the government confirmed that existing petrol vehicles will not face immediate bans.

Chief Minister Gupta stated that current vehicle owners can continue using their vehicles until their validity expires.

However, the policy sets a phased restriction timeline:

  • From January 2027: No new petrol three-wheeler registrations
  • From April 2028: No new petrol two-wheeler registrations

The government emphasized that these measures are aimed at gradually transitioning toward cleaner mobility without affecting existing users.

Scrapping Incentives for Older Polluting Vehicles

The EV policy also introduces scrapping incentives for replacing older vehicles across all major categories:

  • Two-wheelers
  • Three-wheelers
  • Four-wheelers

These incentives are designed to accelerate the removal of high-emission vehicles from Delhi’s roads and promote faster adoption of cleaner alternatives.

Government Projects Over ₹15,000 Crore in Total Benefits

According to official estimates, the Delhi EV Policy 2026 is expected to:

  • Attract over ₹7,000 crore in investment over four years
  • Deliver more than ₹15,000 crore in combined benefits, including tax exemptions and EV infrastructure development

The government views this as a major economic and environmental reform initiative.

Government Stresses Urgency of Pollution Reduction and Transport Reform

Highlighting the urgency of environmental action, Chief Minister Gupta said transport emissions remain one of the biggest contributors to air pollution in the capital.

She emphasized that coordinated efforts between the government and citizens are essential to make Delhi cleaner and pollution-free, calling the policy a significant step toward long-term environmental reform.

Policy Valid Until 2030 with Long-Term Green Mobility Vision

The Delhi EV Policy 2026 reflects a structured long-term roadmap for transitioning the capital toward sustainable transportation, combining subsidies, regulatory restrictions, and infrastructure investment to reshape mobility in the coming years.

Read also: Delhi Govt Launches Green Drive Portal Under ‘Ek Ped Maa Ke Naam’ to Plant 70 Lakh Saplings Across City


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