3 min readNew DelhiUpdated: Jun 30, 2026 10:21 AM IST
Direct purchase and scrapping incentives, and tax exemptions are among different ways how vehicle owners are being encouraged to go electric by the Delhi government with the Cabinet approving its new Electric Vehicle Policy on Monday.
Announcing the decision at a press conference at the Delhi Secretariat, Chief Minister Rekha Gupta said the policy will come into effect on July 1 after receiving the approval of Lieutenant Governor Taranjit Singh Sandhu. It will remain in force for the next four years, until March 31, 2030.
Here’s how buyers who are planning to go electric could benefit:
For two-wheelers
The government has structured purchase incentives in such a way that if a vehicle is purchased in the first year after the introduction of the policy, the incentive is higher. The policy offers a subsidy of Rs 10,000 per kWh of battery capacity (up to a maximum of Rs. 30,000) in the first year. The incentive gets cut in the second year by one third to Rs 6,600 per kWh of battery capacity (up to a maximum of Rs. 20,000), and is reduced to half to Rs 3,300 per kWh of battery capacity (up to a maximum of Rs. 10,000) in the third year. But only electric two-wheelers that have an ex-factory price of less than Rs 2.25 lakh are eligible for these incentives, according to the draft. The final policy is yet to be revealed.
For instance, TVS iQube, which is the among the most popular electric two-wheeler in the county, costs around Rs 1.15 lakh in Delhi. The certified capacity of the scooter is 2kWh, which means it will cost roughly Rs. 95,000 for a prospective buyer in the first year, Rs 1.02 lakh in the second year and Rs 1.08 lakhs in the third year. If an owner with a two-wheeler registered under BS-IV emission standards or below gets the vehicle scrapped and purchases the new EV within six months of policy implementation, the government also offers an incentive of Rs 10,000. So the electric scooter will cost Rs. 85,000 in the first year, Rs. 92,000 in the second year and Rs. 98,000 in the third year of the policy.
For four-wheeler owners
While the government has not offered a direct purchase incentive on buying electric cars, it has sought to incentivise petrol or diesel car owners through a scrapping incentive planning a switch. Those who have cars registered under BS-IV emission standards or below, the scrapping incentive is Rs 1 lakh for the first six months.
Similar to the previous policy, the government has continued the exemption from road tax and registration fees for EVs. For instance, if you get your petrol car scrapped and within six months, buy a Tata Nexon EV, which costs around Rs. 14 lakh in the capital, you will get it for roughly Rs. 13 lakh. This benefit will be given only to the first 1 lakh buyers.
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