Delhi EV Policy 2026: Can Regulation, Incentives and Charging Infrastructure Accelerate Electric Mobility?

Delhi EV Policy 2026: Can Regulation, Incentives and Charging Infrastructure Accelerate Electric Mobility?

Delhi’s new EV Policy 2026, effective from July 1, 2026, to March 31, 2030, represents a shift from primarily incentive-based EV promotion toward a combination of financial incentives and regulatory measures. JMK Research notes an estimated ₹15,000 crore in incentives and tax exemptions under the policy.

Delhi’s EV sales increased from 23,683 units in FY2020 to more than 107,465 units in FY2026. Three-wheelers remain a major contributor, while electric two-wheelers recorded particularly strong growth.

The policy sets an ambitious target of 95% of new vehicle registrations being electric by 2027, while aiming for EVs to account for around 30% of the overall vehicle fleet by 2030. However, EV penetration in new vehicle sales was about 12.6% in FY2026, highlighting the scale of the required acceleration.

A major feature is the phased restriction on conventional vehicle registrations. From January 2027, only electric autorickshaws are to be newly registered, while new petrol and CNG two-wheelers are scheduled to be excluded from registration from April 2028.

The policy also links vehicle scrappage incentives with EV purchase subsidies, while providing road-tax and registration-fee exemptions for eligible EVs. These measures are intended to encourage earlier replacement of older internal-combustion vehicles.

Charging infrastructure remains another important part of the transition. Delhi currently has more than 10,000 charging points, compared with an estimated requirement of around 36,000, while the policy targets an additional 30,000 public charging points. JMK notes that two- and three-wheelers may face less dependence on public charging because much of their charging already takes place through homes, societies and fleet depots.

The bigger challenge is the uneven pace of electrification across vehicle categories. Electric three-wheelers had already reached more than 83% penetration of new three-wheeler sales, whereas electric two-wheelers represented only 7.2% of two-wheeler sales in FY2026. Electric goods carriers also remained below 6% penetration.

Industry Significance

Delhi’s policy illustrates how India’s electric-mobility transition is moving beyond consumer subsidies toward a broader ecosystem involving regulation, charging infrastructure, vehicle financing, scrappage, manufacturing and fleet electrification.

For the renewable-energy sector, the expansion of EVs also creates additional electricity demand and opportunities for solar-powered charging, battery storage, smart charging, distributed energy and vehicle-to-grid technologies.