Delhi Notifies EV Policy with Tax Exemptions

By Mahima Katal

New Delhi, July 1: The Delhi government on Wednesday officially notified the Delhi Electric Vehicles (EV) Policy 2026, bringing into effect a new framework aimed at accelerating electric vehicle adoption, improving air quality, and strengthening the city's electric mobility ecosystem.

The policy comes into force from July 1, 2026, following its approval by the Delhi Cabinet, chaired by Chief Minister Rekha Gupta, earlier this week. It subsequently received the approval of Lieutenant Governor Taranjit Singh Sandhu.

According to the official notification issued under the provisions of the Motor Vehicles Act, 1988, the policy will remain in effect until March 31, 2030.

One of the key incentives under the policy is a 100% exemption from road tax and registration fees for electric cars priced up to ₹30 lakh (ex-showroom) and registered in the national capital.

The policy also outlines a phased transition towards electric mobility. From January 1, 2027, only electric auto-rickshaws will be eligible for new registrations in Delhi. Further, beginning April 1, 2028, the registration of new petrol and CNG two-wheelers will be discontinued, with only electric two-wheelers permitted for registration.

To encourage EV adoption, the government has introduced a graded subsidy for electric two-wheelers. Buyers will receive a subsidy of ₹30,000 in the first year of the policy, ₹20,000 in the second year, and ₹10,000 in the third year.

The Delhi government has also committed an investment of approximately ₹15,000 crore over the next four years to promote electric mobility and reduce vehicular pollution. As part of the plan, more than 30,000 EV charging points will be installed across the city to strengthen charging infrastructure.