Delhi EV Policy: National Benchmark for India''s Electric Future

New Delhi, Jun 29 (PTI) Industry leaders on Monday stated that if Delhi successfully transitions into a majority electric vehicle-driven city, it would create a national benchmark for the rest of India while mitigating the capital's chronic air pollution crisis.

Under its EV policy, the Delhi government announced that all electric cars with an ex-showroom price of Rs 30 lakh or less registered in the National Capital will get full exemption on road tax and registration fees.

Besides, only electric auto rickshaws 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.

The state government will invest around Rs 15,000 crore over the next four years to promote electric mobility and reduce vehicular pollution.

Reacting to the development, Ather Energy co-founder and CEO Tarun Mehta, in a post on X, said the Delhi EV policy is "one of the most significant city-level pushes for electrification in India".

Ather Energy is a manufacturer of electric two-wheelers.

"What stands out is not just the scale of the investment, but the way the policy has been designed. The combination of incentives, phased electrification mandates and charging infrastructure creates a very strong foundation," he noted.

More critically, Mehta said, "If Delhi can become a majority EV, then it has the opportunity to become a benchmark for the rest of the country".


While congratulating the Delhi government for taking a long-term view, he said, "Policies like these give the entire ecosystem the confidence to keep investing and building".

"Delhi has once again demonstrated leadership in doing the right thing. By retaining ambitious electrification timelines for high-usage vehicle segments and focusing policy incentives on pure EVs, the government has reinforced the principle that public support should benefit and accelerate technologies that deliver the maximum environmental benefit with zero emissions," Tata Motors Passenger Vehicles' spokesperson said.

This policy provides long-term direction for the industry, strengthens confidence in India's EV ecosystem and can serve as a benchmark for other states pursuing cleaner urban mobility, the official added.

Commenting on the proposed restriction on new ICE (internal combustion engine) registrations for autos and two-wheelers, Icra Ltd Vice President and Sector Head, Corporate Ratings, Rohan Kanwar Gupta, said it is expected to materially accelerate EV adoption in the city while structurally dampening demand for ICE vehicles.

"The policy effectively necessitates a rapid portfolio realignment by OEMs toward electric offerings, with ICE-focused players exposed to potential volume contraction and underutilised capacities," he added.

While EV manufacturing capacity at the aggregate industry level, particularly for two- and three-wheelers, has scaled up and is unlikely to pose a binding constraint to implementation, the pace of transition will remain contingent on ecosystem readiness, including adequacy of charging infrastructure, availability of financing, and development of service networks, Gupta noted.

On the exclusion of hybrids from the policy, he said it "underscores a clear emphasis on zero-emission mobility".

"While this strengthens the long-term EV transition and reinforces investment clarity for EV-focused technologies, it also removes a transitional pathway for consumers, potentially posing near-term adoption challenges," he added.

"The price-agnostic consumer support matters because it doesn't penalise buyers who want more from their machine - whether in terms of range, tech, performance or design - and the push on charging infrastructure finally treats energy as part of the product rather than an afterthought. Clean technology is the way forward, and we at Ultraviolette are making that transition exciting," Narayan Subramaniam, CEO and Head of Design, Ultraviolette Automotive, said.