The Delhi Budget 2026 has proposed a new EV Policy 2.0 that prioritizes vehicle scrappage over simple subsidy, aiming to systematically remove the state's aging, polluting fleet with incentives tied to decommissioning of older vehicles.
The policy includes incentives such as up to ₹100,000 for private electric cars, a flat ₹10,000 incentive for electric two-wheelers, and ₹25,000 for electric three-wheelers. The government has also proposed a ₹50,000 grant for owners who choose to convert their existing petrol/diesel cars into EVs.
EVs will continue to enjoy 100% waiver on road tax and registration fees till 31 March 2030, but the Delhi government has sought to plug the 'luxury loophole' by exempting electric cars with an ex-showroom price of up to ₹30 lakh from road tax and registration fees.
The Delhi government has allocated ₹8,374 crore to the transport department, with a heavy emphasis on public electrification, including the addition of 6,130 new electric buses in 2026 and the installation of at least one public charging station on the premises of all 400+ vehicle dealerships in Delhi.
The policy also includes a new battery recycling framework to manage the projected surge in lithium-ion waste and the integration of all new payouts with the Direct Benefit Transfer and Aadhaar-based e-KYC systems to reduce processing time from 40 days to under a week.
