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Delhi govt clears EV policy; cars under Rs 30 lakh to be exempt from road tax, registration fees

by AIP Online Bureau | Jun 29, 2026 | Eco/Invest/Demography, Indian News, Non-Life, Technology | 0 comments

Addressing a press conference, Chief Minister Rekha Gupta said that around Rs 15,000 crore will be invested under the new policy over the next four years to promote electric mobility and reduce vehicular pollution in the national capital.

New Delhi: All electric cars with an ex-showroom price of Rs 30 lakh or less registered in the national capital will be granted 100 per cent exemption on road tax and registration fees, as the Delhi government approved a new EV policy on Monday.

Under the new policy, people buying e-two-wheelers will get a subsidy of Rs 30,000 in the first year, Rs 20,000 in the second year and Rs 10,000 in the third year.

As part of the policy, only electric autorickshaws will be registered in Delhi from January 1, 2027, while registration of new petrol and CNG two-wheelers will be phased out, with only electric two-wheelers to be registered from April 1, 2028.

Addressing a press conference, Chief Minister Rekha Gupta said that around Rs 15,000 crore will be invested under the new policy over the next four years to promote electric mobility and reduce vehicular pollution in the national capital.

The policy, approved by the Delhi Cabinet, will come into effect from July 1, Gupta said, describing it as a major step towards making Delhi a pollution-free city by March 31, 2030.

Gupta said that the new policy lays special emphasis on the transport sector and provides a roadmap for the phased transition from conventional fuel-powered vehicles to electric vehicles.

To encourage the adoption of electric vehicles, the government has announced purchase incentives for buyers.

Similarly, buyers of electric three-wheelers will be eligible for incentives of Rs 50,000, Rs 40,000 and Rs 30,000 in the first, second and third years, respectively.

Buyers of N1 category electric trucks will receive a purchase incentive of up to Rs 1 lakh, according to an official.

The policy also provides a scrapping incentive of Rs 1 lakh for owners of BS-IV four-wheelers or below standard who scrap their vehicles and switch to electric vehicles.
An official said no subsidy will be provided for hybrid vehicles.

A dedicated online portal will be developed to enable applicants to apply for EV-related incentives under the policy.

The government said the policy also envisages expansion of charging infrastructure, vehicle scrapping facilities and other measures to accelerate the transition to electric mobility across the city.

Under the new electric vehicle (EV) policy, the Delhi government aims to reduce air pollution from commercial vehicles by offering special incentives for both small and large trucks.

According to officials, a government study from 2018 found that 33 per cent of the vehicular pollution is from commercial goods carriers.

“And of the total number of these commercial goods carriers, 80 per cent are ‘N1 category’, which are ‘mini trucks’, so in the new policy, we have offered purchase and scrapping incentives for the owners,” a transport department official said.

According to Rajendra Kapoor, president of All India Motor and Goods Transport Association, has welcomed the step for new electric smaller trucks.

“We welcome this step of the government. There are around 1 lakh such mini-trucks across the city, which are registered. Making new registration EV only mandatory will bring down the air pollution in the city,” Kapoor said.

Buyers of N1 category electric trucks will receive a purchase incentive of up to Rs 1 lakh and scrapping incentive of Rs 50,000 for N1 trucks, these trucks are capable of carrying loads of up to 3.5 tonnes.

“Truck revolution-to reduce emissions from heavy vehicles, the first 1,000 N2 category electric trucks purchased within three months of the policy notification will be exempt from ‘no-entry’ time restrictions for 10 years,” the government said in a statement.

Kapoor, however, did not support the move for big trucks-N2 commercial vehicles as that would require much bigger pan-India EV charging infrastructure.

He added that the “N2 trucks, which can carry loads ranging from 3.5 to 12 tonnes are big trucks, these travel across several states, even with the ‘no entry’ incentive it is not beneficial to truck owners which would require charging points across the routes.

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