Delhi’s draft electric vehicle policy 2026: Year-wise incentives to buy electric autos & two-wheelers; also for women, transgenders

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“After the policy is announced, the Transport department will send the final draft to the Cabinet. Once approved, it will be placed in the public domain before being formally notified, likely from the next financial year,” a senior official said.

Officials said vehicular emissions are among the largest contributors to Delhi’s air pollution, accounting for nearly 23% of the pollution during winter. Two-wheelers constitute about 67% of the city’s total vehicle stock, making their electrification crucial for reducing emissions. “Keeping this in view, the proposed policy includes major year-wise incentives during the first three years to accelerate EV adoption,” the official said.

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EV adoption boost for three years

To accelerate adoption of EVs, the department has proposed major incentives only for the first three years. For instance, buyers purchasing an electric two-wheeler priced up to Rs 2.25 lakh (ex-showroom) will receive an incentive of Rs 10,000 per kWh, up to a maximum of Rs 30,000 in the first year after the date of notification. The incentive will be reduced yearly. In the second year, buyers will receive Rs 6,600 per kWh, capped at Rs 20,000, while in the third year, the incentive will drop to Rs 3,300 per kWh, up to a maximum of Rs 10,000.

“The idea is to push a large number of people to buy electric bikes and autos in the first year only. There will be no cap on the number of people who buy such vehicles during these three years. We believe this will attract a large number of buyers,” said the official.

A similar incentive structure has been proposed for electric auto-rickshaws, with an incentive of Rs 50,000 offered in the first year, Rs 40,000 in the second, and Rs 30,000 in the third year.

Officials said Delhi sees a large number of two-wheeler registrations each year. “Delhi has seen registration of over 1 lakh two-wheelers this year so far. Last year, it was over 5 lakh… So, our aim is to convert this two-wheeler and auto-rickshaw fleet to EV by 2030,” said the official.

Special incentives for women, transgender drivers

Besides, the policy will provide special incentives for women and transgender drivers under ‘Pink e-permit’ and ‘Rainbow permit’ categories, respectively. “The government plans to train women and transgender persons to empower them and strengthen last-mile connectivity. However, the permit holders must drive the vehicles themselves and cannot lease them out. Some relaxations, in case of pregnancy, will be allowed,” the official said.

Officials said priority allotment for autorickshaws will start from April 1 and remain valid for the first nine months.

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Meanwhile, the draft policy proposes incentives for electric trucks (N1 category) to promote EV adoption in the commercial vehicle segment. “The eligibility of EV models for purchase incentives will be aligned with the Centre’s PM E-Drive scheme and other related programmes… so that more and more people switch to electric vehicles,” said the official.

According to officials, the main objective of this policy is to support installation of a comprehensive public and private charging network, enable a robust EV supply chain, including battery recycling and servicing, and improve air quality by reducing reliance on Internal Combustion Engine (ICE) vehicles.

However, unlike the existing policy, the draft proposes limits on road tax and registration fee exemptions for electric cars. According to the draft, all electric cars with an ex-factory price of up to Rs 30 lakh registered in Delhi will receive 100% exemption from road tax and registration fees until March 31, 2030. Vehicles priced above Rs 30 lakh will not receive this exemption.

Vinkesh Gulati, Chairperson Automotive Skill Development Council and former president of Federation of Automobile Dealership Associations, said removing the price cap could further encourage EV adoption. “If the government really wants to push people to switch to e-cars, they should not keep this price cap. While e-cars are costly, even prices of non-EVs have increased due to stricter safety regulations and air pollution issues,” he added.