Delhi’s draft EV policy has sent ripples throughout the industry! From reducing the cost of EVs to enacting end-of-life battery management, the policy has something for the entire EV ecosystem. In this blog, we take a comprehensive look at what it brings to the table. The topics covered include:
- Purchase and scrappage incentives: What they include and how they will impact the consumer
- Other measures enacted to boost EV adoption and reduce road pollution:
- Steadfast adoption of EVs by fleet aggregators and delivery operators
- Retiring EVs used by government bodies and officials
- Building a battery traceability ecosystem
- Imposing deadlines beyond which no new petrol vehicles will be sold in specific categories
- Expert opinion on the policy
With this primer, we aim to inform the consumer about the policy’s aims, objectives and its modus operandi. If it succeeds, it could mean a new dawn for India’s EV revolution – so let’s dive in!
How the Draft EV Policy Incentivizes Consumers
The first thing on our agenda: Incentives. The mechanism adopted to increase EV sales, whilst simultaneously reducing the number of petrol vehicles on road, is two-pronged. It includes:
- Offering incentives for buying EVs
- Incentivising retiring old petrol vehicles.
Reducing the Cost of EVs
In order to pull down the cost barrier, the government plans to offer rebates on the purchase of two, three and four-wheeler electric vehicles. Since commercial transport pollutes disproportionately more, the policy focuses on the former to address Delhi’s pollution issue.
The structure of incentives is mentioned below.
| Type of EV | Year 1 from Date of Notification | Year 2 from Date of Notification | Year 3 from Date of Notification |
| E2W | Rs. 10,000/ kWh, capped at Rs. 30,000 | Rs. 6,600/ kWh, up to Rs. 20,000 | Rs. 3,300/ kWh, up to Rs. 10,000 |
| E3W Auto-Rickshaw (L5M) | Rs. 50,000 | Rs. 40,000 | Rs. 30,000 |
| E4W Goods Vehicles (N1) | Rs. 1,00,000 | Rs. 75,000 | Rs. 50,000 |
As the table shows, not only do the incentives differ by vehicle type, but they reduce with time too. For instance, an e-2W bought within a year from the date of notification is eligible for a Rs. 10,000/ kWh rebate, capped at Rs. 30,000; within two years from the date of notification: Rs. 6,600/ kWh, up to Rs. 20,000, and in the third year: Rs. 3,300/ kWh, up to Rs. 10,000. The rationale is clear: add as many EVs onto roads, as quickly as possible.
In addition to reducing the purchase price, the Policy incentivizes the retirement of old Petrol vehicles too.
Retiring Old Petrol Vehicles
With old vehicles releasing a higher amount of pollutants, moving them off roads is key. By offering scrappage incentives, the Government plans to create space for the new EVs coming in.
| Type of EV | Year 1 from Date of Notification |
| E2W | Rs. 10,000 |
| E3W (L5M) | Rs. 25,000 |
| E4W (Non-Transport) | Rs. 1,00,000 |
| E-4W Goods Carriers (N1 Trucks) | Rs. 50,000 |
As the table shows, scrappage incentives are applicable to four separate EV categories, including two- and three-wheelers, and cars for personal as well as commercial use. Each of them are applicable only if the purchase is made within six months of issuance of the Certificate of Deposit (CoD) from an authorized scrapping facility.
Thus, it’s evident that the Government is addressing this issue from both the Demand and Supply sides. In addition to the former, the task of restricting the entry of conventional engine-based vehicles has received additional attention from the Government’s side.
Phasing out ICE Vehicles from Commercial Fleets
The task of reducing pollution sees the Government impose strict mandates on fleet operators. Apart from BS-VI standard two-wheelers, no other two- or four-wheelers can be inducted into fleets beyond the date of notification. The deadline for the former is the end of this year i.e. 31st December 2026.
Setting a Deadline for Registering New Petrol/ Diesel Vehicles
This is perhaps the most ambitious component of the Policy. Under it, the government has set deadlines beyond which only electric vehicles will be registered under the two and three-wheeler segments. From the start of 2027, only new electric three-wheelers will be registered while the deadline kicks in at the start of 2028 for electric two-wheelers.
The sum total of these initiatives focuses on reducing pollution coming from the streets of India’s National Capital Region (NCR).
Below, we take a look at other key measures proposed to be implemented in the Draft EV Policy 2.0.
Driving Forward Change : Additional Measures to Strengthen the EV Ecosystem
Other key measures include:
1. All government owned, hired, and leased vehicles have to be electric from the date of notification.
2. All new intra-state buses have to be electric from the date of notification (11th April 2026).
3. Every OEM is required to install at least one public EV charging station outside each dealership, comprising a minimum of 3 charging points for two-/three-wheelers and 2 charging points for four-wheelers.
4. A fully digital, paperless framework for all applications, approvals and disbursal will be implemented and remain in force till 31st March, 2030.
5. On the environmental front, the Delhi Pollution Control Committee (DPCC) will facilitate battery collection centres and enforce compliance with Battery Waste Management Rules 2022, including extended producer responsibility norms, while promoting a battery traceability ecosystem.
With this policy, India’s National Capital Region (NCT) is expected to undergo a complete electric mobility transformation. From adding more charging stations to sustainable waste management, it is a holistic attempt at strengthening the EV industry.
Next, we glean what experts and key stakeholders have said about the policy.
‘Cutting through the Noise’ : What do the Experts say?
While the policy has been welcomed across the board, experts have expressed hesitation on some minor fronts:
- Ayush Lohia, CEO of Youdha Auto, an EV automobile manufacturer, described the policy as “very prospective and future-looking”. However, he highlighted two problem areas: the high cost of retail EV financing, and less clarity regarding the “battery-as-a-service” (BaaS) plan to be implemented.
Indeed, not only are EVs priced higher, but they can be expensive to finance too. Additionally, more clarity regarding the BaaS service can bring down costs for consumers and create a well-oiled system.
- Puneet Gupta, Director, Sales and Powertrain Forecast, India & ASEAN, S&P, explained that limited charging infrastructure could prove a bottleneck for higher EV adoption.
While the policy has brought in a number of changes, the lack of focus on charging infrastructure could prove a problem. It is the primary driver of range anxiety in Indians, making it important to address the problem immediately.
- Radhe Shyam Sharma, Head of the Department of Environmental Studies at Delhi University, appreciated the “battery recycling” part of the program, calling it “one of its most consequential parts”. He called on the authorities to ensure strict enforcement in order to address “one of the most critical externalities of electric mobility”, i.e. end-of-life battery management.
Indeed, this is a win. However, as Mr. Sharma explains, nothing is achieved until strict enforcement is applied.
- Akshay Shekhar, Co-founder and CEO, Kazam, called the policy a significant evolution. He said, “Delhi has once again proven why it is a benchmark state in EV policy. The 2026 draft goes beyond incentives and addresses market direction, fleet transition, and execution architecture together.” He identified disciplined execution as the key challenge that will determine if the policy achieves success.
‘The Bottom Line’ : What’s the Verdict?
Overall, the Draft EV Policy is a commendable initiative. Not only does it scale down the cost barrier, but it goes a step beyond – the policy actively restricts new petrol vehicles to reduce pollution and road congestion. With a plan to manage battery waste, it creates a sustainable way to scale the electric mobility sector in Delhi.
While experts have highlighted areas for improvement, the most important task is ‘disciplined execution’, as highlighted by the Kazam CEO. If the stipulated mandates are imposed correctly, Delhi’s EV Industry could set the tone for the rest of the country.
Note: You can offer suggestions on the policy by emailing your feedback to evpolicy2026@gmail.com, or via post to the following address: Joint Commissioner (EV), Transport Department, Govt. of NCT of Delhi, 5/9 Underhill Road, Delhi- 110054. The deadline for submitting feedback is 11th of May, 2026.
At Kazam, our job is simple: to support the EV revolution with smart, effective and aesthetic charging solutions. From compact wallbox chargers to fleet management solutions, we leave no stone unturned in helping EVs flourish across personal and commercial spaces. Interested in unlocking your EV’s potential? Reach out to us today and begin your journey.
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