Delhi government has released a draft Electric Vehicle Policy for 2026 to 2030. The main goal is to speed up electric vehicle adoption and improve air quality in the capital. The policy is currently open for public feedback for 30 days before final approval.
How EV buyers will be affected
The earlier EV policy from 2020 already gave full tax benefits. This new version adds a price limit and changes how incentives are given.
Electric cars priced at Rs 30 lakh or below will get 100 percent exemption on road tax and registration fees until March 31, 2030. EVs priced above Rs 30 lakh will not get any exemption. This will directly affect premium electric cars in Delhi.
This change will strongly benefit mass-market EV makers like Tata Motors, Mahindra & Mahindra and MG Motor India. Their electric cars fall mostly under the Rs 30 lakh range, so on-road prices in Delhi may become lower. It may also bring EV pricing closer to petrol cars in some cases.
Luxury EVs from brands like BMW, Mercedes-Benz, Tesla, BYD and Porsche will not get any benefit under this policy, which could increase their effective on-road cost in Delhi.
Hybrid cars also get benefit
The policy also supports strong hybrid cars. Hybrids priced under Rs 30 lakh will get 50 percent exemption on road tax and registration fees. This will benefit models like Maruti Grand Vitara, Toyota Hyryder, Innova Hycross, Invicto and Honda City Hybrid. More hybrid models are also expected in the future from different brands.
Scrapping incentive plan
Another major point is scrapping incentive. The policy offers Rs 1 lakh benefit for scrapping old BS-IV and older Delhi-registered vehicles. This benefit will apply only to the first 1 lakh applicants and will be paid directly through bank transfer.
Other major changes
From January 1, 2027, only electric three-wheelers will be allowed for new registration in Delhi. This is part of a push to shift public transport fully towards electric mobility.
Market impact
India’s EV market has already grown fast, and this policy is expected to increase demand further in Delhi. Hybrid vehicles may also see stronger demand due to tax benefits.
Overall, the policy creates a mixed approach. EVs get strong support under Rs 30 lakh, hybrids also get partial benefit, while premium EVs lose tax advantage in the capital.