Delhi's EV subsidy has one big catch
What's the story
Delhi's Electric Vehicle (EV) Policy 2026, which came into effect on July 1, offers purchase incentives of up to ₹1 lakh. It also provides scrapping benefits and exemptions from road tax and registration fees. However, there's a major caveat. Anyone availing these purchase incentives under the policy will not be able to transfer or re-register their vehicle outside Delhi for three years.
Policy intent
Why this restriction is in place
While the policy doesn't explicitly say why this restriction is in place, it is likely aimed at protecting Delhi's EV ecosystem. The provision seeks to ensure that government subsidies are not misused by transferring subsidized vehicles to other states during the initial years of ownership. This way, the benefits of these incentives stay within Delhi and contribute toward building a robust electric vehicle market.
Benefit breakdown
What are the purchase incentives?
The policy offers financial incentives to make EV ownership more affordable. Buyers of eligible electric two-wheelers priced up to ₹2.25 lakh (ex-showroom) can avail purchase incentives of ₹10,000 per kWh, capped at ₹30,000 in the first year. The incentive will reduce in the second and third years. Buyers of eligible e-autos will receive ₹50,000 in the first year, ₹40,000 in the second year, and ₹30,000 in the third year, provided the vehicle has a battery capacity of at least 4kWh.
Scrapping benefits
Scrapping incentives for old ICE vehicles
The policy also offers scrapping incentives to encourage the retirement of older internal combustion engine (ICE) vehicles. Buyers of electric two-wheelers can get ₹10,000 for scrapping a Delhi-registered BS-IV or older two-wheeler. The incentive is ₹25,000 for electric auto-rickshaws and up to ₹1 lakh for electric cars priced up to ₹30 lakh after scrapping a Delhi-registered BS-IV or older car.
Exemption details
Other benefits under the Delhi EV Policy 2026
The policy also offers a 100% exemption from road tax and registration fees for EVs purchased and registered in Delhi during the policy period. However, electric cars with an ex-showroom price above ₹30 lakh won't be eligible for these exemptions. For those priced at ₹30 lakh or below, the exemption will continue till March 31, 2030. Buyers will have to submit their subsidy applications within 30 days of receiving vehicle registration certificate.