Delhi approves EV policy with incentives, vehicle tax exemptions

The Delhi government has just approved a brand-new Electric Vehicle (EV) policy to run until March 2030, aiming to cut down the city’s heavy air pollution.

Here is the gist of what’s changing from July 2026:

  • Tax breaks: If you buy a pure electric car costing up to ₹30 lakh (about £28,000), you won't have to pay any road tax or registration fees. Hybrids, however, get no discounts.

  • Cash incentives: There are sliding cash subsidies over the next three years for buying EVs. For motorbikes/scooters, you'll get up to ₹30,000 off in the first year, and up to ₹50,000 for three-wheelers.

  • Phasing out petrol: From January 2027, only electric auto-rickshaws will be registered. By April 2028, the government will stop registering new petrol or CNG two-wheelers entirely.

  • Buses and trucks: They want 30% of all school buses to be electric by 2030. There's also a ₹1 lakh (£950) bonus for scrapping older petrol/diesel cars to switch to an EV.

  • Massive infrastructure push: The government is spending over ₹7,000 crore to build 30,000 new charging points across Delhi over the next four years.

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