The Delhi government’s draft Electric Vehicle Policy 2026–2030 proposes a 100 per cent exemption on road tax and registration fees for electric cars priced up to ₹30 lakh, applicable till March 31, 2030. This is aimed at making EVs more financially attractive to middle- and upper-middle-income buyers and boosting penetration in the passenger vehicle segment.
However, vehicles above this threshold will not be eligible for any such benefits, while strong hybrid models may receive a 50 per cent exemption on road tax and registration charges, according to the draft uploaded by the transport department.
Phased restrictions on internal combustion vehicles
The draft policy also offers phased restrictions on internal combustion engine (ICE) vehicles, particularly in high-volume segments. From January 1, 2027, only electric three-wheelers will be permitted for new registrations in Delhi. The decision is important as three-wheelers form a crucial part of both last-mile connectivity and commercial transport in the capital.
The policy further indicates a broader transition trajectory towards electrification of two-wheelers as well. While the focus remains on new registrations, the draft does not propose an immediate ban on existing ICE vehicles in order to allow a gradual and managed transition.
EV ecosystem and infra push
Delhi’s draft EV policy emphasises the creation of a supporting ecosystem for electric mobility, including expansion of public and private charging infrastructure across the city. It also prioritises the development of a sustainable EV supply chain, covering battery recycling, servicing, and component recovery systems.
A strong focus has also been placed on circular economy principles, particularly battery disposal and reuse mechanisms, in order to address long-term environmental concerns associated with EV adoption.
Air quality improvement at the core
The policy is closely linked to Delhi’s ongoing efforts to combat air pollution, which remains one of the most severe in the country. Citing findings from the Commission for Air Quality Management (CAQM), the draft identifies vehicular emissions as a major contributor to pollution levels in the National Capital Region. It notes that rapid electrification of high-use segments, including two-wheelers and commercial vehicles, is critical to achieving sustained improvements in air quality.
The policy builds on Article 21 of the Constitution, reinforcing the right to a clean and pollution-free environment, and aligns with existing legal frameworks such as the Environment Protection Act, 1986 and the Motor Vehicles Act, 1988.
Govt seeks public feedback
The draft EV policy is an extension of the original Delhi EV Policy launched in 2020, which has been extended multiple times after its initial expiry in August 2023. The new framework, once notified, will remain in effect until 2030.
The Delhi government has now opened the draft for public feedback and suggestions for a period of 30 days before finalisation, indicating scope for further revisions based on the input received.
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