Delhi’s Big EV Push: Petrol Two-Wheelers Banned by 2028, Massive Subsidies Announced in New Policy

In a bold and aggressive move to tackle rising air pollution, the Government of Delhi has unveiled its draft Electric Vehicle (EV) Policy 2026–2030, proposing sweeping changes that could transform how millions commute in the national capital. The policy not only aims to accelerate EV adoption but also signals a phased exit of petrol and diesel vehicles in key segments.

Petrol Two-Wheelers to Be Phased Out by 2028

One of the most striking proposals is the restriction on new petrol two-wheelers. Under the draft, only electric two-wheelers will be allowed for new registrations starting 2028, effectively phasing out petrol scooters and bikes in the city. Similarly, from 2027, only electric three-wheelers will be permitted for new registrations, marking a major shift in Delhi’s public and last-mile transport ecosystem.

Pollution Crisis Drives Policy Push

The policy is rooted in the urgency to address Delhi’s worsening air quality crisis. Vehicular emissions are estimated to contribute nearly 23% of the city’s pollution, making transport a key target for reform. The initiative draws inspiration from the Right to Clean Air under Article 21 of the Constitution, framing clean mobility as a fundamental right for citizens.

Big Incentives to Drive EV Adoption

To encourage faster transition, the government has proposed attractive financial incentives across categories. Buyers of electric two-wheelers priced up to ₹2.25 lakh can receive subsidies starting at ₹10,000 per kWh in the first year, with a maximum benefit of ₹30,000, gradually reducing over three years. Electric three-wheelers (e-autos) will get incentives of up to ₹50,000 in the first year, while electric goods vehicles could receive benefits up to ₹1 lakh. These incentives are expected to significantly reduce the upfront cost barrier for EV buyers.

Scrapping Benefits to Accelerate Transition

The policy also introduces scrapping incentives aimed at phasing out older polluting vehicles. Owners can receive ₹10,000 for scrapping two-wheelers, ₹25,000 for three-wheelers, and up to ₹1 lakh for cars priced below ₹30 lakh. Goods vehicle owners can avail incentives of up to ₹50,000, further encouraging a shift toward cleaner alternatives.

Tax Exemptions Make EVs More Attractive

In addition to subsidies, the policy offers strong tax benefits. Electric vehicles will be exempt from road tax and registration fees, making them significantly cheaper compared to conventional vehicles. Cars priced up to ₹30 lakh will enjoy full exemptions, although luxury EVs above this threshold will not receive similar benefits.

Public Transport and Government Fleet to Go Electric

The draft policy also focuses on electrifying public and government transport. At least 30% of school buses are expected to be electric by 2030, while government fleets will gradually transition to EVs. These measures aim to create large-scale demand and set an example for private adoption.

Policy Timeline and Implementation

The proposed EV policy will remain in effect until March 31, 2030, unless extended or revised. If implemented as planned, it could make Delhi one of the most aggressive EV markets in India, setting a benchmark for other states to follow.

What is Delhi EV Policy 2026?

Delhi EV Policy 2026–2030 is a draft plan to promote electric vehicles and reduce pollution through mandates, subsidies, and tax benefits.

Will petrol two-wheelers be banned in Delhi?

The policy proposes that from 2028, only electric two-wheelers will be allowed for new registrations.

What subsidies are offered for EVs?

Subsidies include up to ₹30,000 for electric two-wheelers, ₹50,000 for e-autos, and ₹1 lakh for goods vehicles.

Are there tax benefits for EV buyers?

Yes, EVs will get 100% exemption on road tax and registration fees, especially for vehicles priced up to ₹30 lakh.

When will the policy be implemented?

The policy is proposed to be effective until March 31, 2030, subject to approval and revisions.