Delhi has approved a new electric vehicle policy with a ₹15,000 crore outlay over four years. The plan combines vehicle subsidies, scrapping incentives, tax waivers and phased restrictions on fresh petrol and CNG vehicle registrations.
The largest cash benefit for a private car owner is ₹1 lakh for scrapping an eligible old Delhi-registered car and buying a qualifying electric car. The Delhi EV Policy 2026 is expected to start on July 1, 2026, and remain active until March 31, 2030. It also offers registration-related savings for electric cars priced up to ₹30 lakh.
How Much Subsidy Will Electric Car Buyers Receive?
A buyer will not automatically receive a ₹1 lakh cash subsidy merely for purchasing an electric car. The payment is specifically linked to vehicle scrapping.
The buyer must scrap a Delhi-registered BS-IV or older car through an authorised Registered Vehicle Scrapping Facility. A new non-transport electric car must then be purchased within six months from the date on the Certificate of Deposit.
The new EV’s ex-factory price cannot exceed ₹30 lakh. The ₹1 lakh incentive will be available to the first 1,00,000 eligible applicants. The person claiming the benefit must also own the vehicle being scrapped.
Payments will be transferred directly to eligible applicants after verification by the Delhi Transport Department.
Electric cars priced up to ₹30 lakh ex-showroom will also receive a 100% exemption from road tax and registration charges. Reuters reported that these charges generally represent around 4% to 10% of a car’s price. The final saving can, therefore, exceed ₹1 lakh when the scrapping payment and tax exemption are combined.
Electric cars costing more than ₹30 lakh will not qualify for the registration and road-tax waiver.
What Benefits Are Available For Scooters, Autos And Goods Vehicles?
The Delhi EV Policy 2026 provides declining year-wise purchase subsidies. Buyers who purchase vehicles during the first policy year will receive the highest amount.
Major benefits announced under the policy include:
- Electric two-wheelers can receive up to ₹30,000 during year one, ₹20,000 in year two and ₹10,000 in year three.
- Scrapping an eligible Delhi-registered BS-IV or older two-wheeler can bring an additional ₹10,000.
- Electric auto-rickshaws can receive ₹50,000 in year one, ₹40,000 in year two and ₹30,000 in year three.
- Eligible e-auto buyers can claim another ₹25,000 after scrapping an older qualifying three-wheeler.
- N1 electric goods vehicles can receive ₹1 lakh during year one, ₹75,000 in year two and ₹50,000 in year three.
- Scrapping a qualifying older N1 goods carrier can provide an additional ₹50,000.
The electric two-wheeler’s ex-factory price must remain within ₹2.25 lakh. Eligible models will also have to meet requirements linked to the Central Government’s PM E-DRIVE scheme and Delhi’s operational guidelines.
Applicants should confirm model eligibility before paying a booking amount. A dealer’s verbal promise does not guarantee subsidy approval.
What The Official PTI News Post Says
An official PTI News post on X reported that electric cars priced up to ₹30 lakh will receive full road-tax and registration-fee exemption.
The post also confirmed that electric two-wheeler buyers can receive ₹30,000 in the first year. The amount falls to ₹20,000 during the second year and ₹10,000 during the third year.
This clarification is important because several social media posts describe the ₹1 lakh payment as a general electric-car subsidy. It is actually a conditional scrapping incentive. The tax and registration exemption is a separate financial benefit.
When Will Delhi Stop Registering Petrol Two-Wheelers?
Delhi plans to permit only electric three-wheelers for fresh registrations from January 1, 2027. New petrol and CNG auto-rickshaws will not qualify for registration after the deadline.
A larger change will arrive on April 1, 2028. From that date, Delhi plans to register only electric two-wheelers. Fresh registrations of petrol and CNG scooters and motorcycles will stop.
The rule applies to new registrations. Owners of existing petrol vehicles should wait for the final implementation notification before assuming that currently registered vehicles must immediately leave the road.
The final policy has also excluded hybrid vehicles from subsidies and tax benefits. An earlier April draft had proposed partial road-tax relief for strong hybrids, but reports following the Cabinet approval confirmed that hybrids were removed from the incentive framework. Buyers should follow the final notification rather than the draft document.
How Can Buyers Claim The Scrapping Incentive?
The old vehicle must first be handed over to an authorised scrapping facility. The facility will issue a Certificate of Deposit after completing the required checks.
The buyer must purchase and register the qualifying EV in Delhi within six months. Important documents may include the Certificate of Deposit, Aadhaar, old registration details, new EV invoice, bank account information and the new registration certificate.
The Transport Department will publish the final application portal, verification procedure and Direct Benefit Transfer instructions. Since the car benefit is restricted to the first 1,00,000 eligible applicants, owners should avoid unnecessary delays after receiving their scrapping certificate.
FAQs
1. How Much Is The Electric Car Scrapping Incentive?
Eligible buyers receive ₹1 lakh after scrapping a qualifying older Delhi car and purchasing an EV.
2. Do All Electric Car Buyers Get ₹1 Lakh?
No, buyers must scrap an eligible Delhi-registered vehicle and satisfy every notified policy requirement first.
3. Which Cars Receive Road-Tax And Registration Exemption?
Electric cars priced up to ₹30 lakh ex-showroom qualify for complete road-tax and registration exemption.
4. When Will Petrol Two-Wheeler Registrations Stop?
Delhi will permit only new electric two-wheeler registrations from April 1, 2028, under this policy.
5. When Must The New Electric Vehicle Be Purchased?
Buyers must purchase the qualifying EV within six months after receiving their Certificate of Deposit.
