No New ICE Two-Wheelers From 2028, EV 4Ws Go Tax-Free; Delhi's New EV Policy Explained

The Delhi government has approved the 2026 Electric Vehicle (EV) Policy to encourage the adoption of electric vehicles in the state. The Delhi Cabinet has officially approved the Delhi EV Policy 2.0, which will take effect on July 1 and remain in force until March 31, 2030. This four-year policy aims to enhance the adoption and development of electric mobility in the national capital. The government has allocated a budget of Rs 15,000 crore for the next four years to promote green mobility in Delhi. In addition to this funding, the government has introduced new incentives for residents purchasing electric vehicles in the state. Let us break down the new Delhi EV Policy for you. Read the details of the incentives for personal mobility vehicles below.

Also Read: Upcoming Car Launches In July 2026: From EVs To PHEVs, It's All About SUVs

No New ICE Two-Wheelers From 2028

With the new EV policy in place, the registration of new ICE two-wheelers will be banned in Delhi from 2028. To support this transition, the government will offer various benefits, including scrappage incentives and subsidies on the purchase of new electric two-wheelers. A benefit of up to Rs 30,000 will be available on the purchase of a new electric two-wheeler. However, the amount will depend on the year of the scheme. For example, the benefit will be Rs 30,000 in the first year, Rs 20,000 in the second year, and Rs 10,000 in the third year. The government will not allow the registration of any new petrol two-wheeler from April 1, 2028, onwards. There will be no ban on existing petrol two-wheelers, and they can continue to operate under the existing norms and regulations.

No Tax On Electric 4-Wheelers Under Rs 30 Lakh

The biggest decision under the new EV policy is the tax exemption on electric cars priced under Rs 30 lakh (ex-showroom). Buyers will not be required to pay any road tax or registration fee when purchasing a new battery-electric vehicle priced under Rs 30 lakh (ex-showroom). However, this benefit is applicable only to pure battery electric vehicles. Hybrids and plug-in hybrids will not be eligible for this exemption.

Scrappage Benefits Up To Rs 1 Lakh

Along with tax benefits and other incentives, the new EV Policy also offers benefits for scrapping old cars and two-wheelers. If someone wants to switch to a new electric vehicle, they can avail of scrappage benefits of up to Rs 10,000 for two-wheelers and up to Rs 1 lakh for cars. With this, customers can get a more cost-effective deal on their new vehicle while also disposing of their old vehicles with ease.

New EV Charging Station Setup

Over the next four years, the government plans to install 30,000 electric vehicle charging points across Delhi. These charging points will be funded under the PM e-Drive Scheme and will help people gain better access to EV charging infrastructure across the city. However, the government has not revealed the exact number of two-wheeler and four-wheeler chargers to be installed under this scheme.

What's In For Other Vehicles?

For commercial vehicles, the government has rolled out several benefits in the form of subsidies, scrappage incentives, and other benefits. Similar to ICE two-wheelers, no new ICE three-wheeler can be registered in Delhi from January 1, 2027. Commercial vehicle buyers will receive a purchase incentive of up to Rs 1 lakh on electric vehicles, depending on the vehicle class. Schools are also advised to convert 10–30% of their fleet to electric buses by the end of the policy period.