loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

The Government of Delhi has approved a new EV policy aimed at accelerating electric mobility adoption in the capital

ICICIdirect Research 30 Jun 2026 DISCLAIMER

News: The Government of Delhi has approved a new EV policy aimed at accelerating electric mobility adoption in the capital, mandating that only electric auto-rickshaws can be registered from January 1, 2027, and only electric two-wheelers from April 1, 2028. The policy also offers scrapping incentives of up to ₹1 lakh for BS-IV cars, subsidies for electric two- and three-wheelers, excludes hybrid vehicles from incentives, and is expected to spend nearly ₹15,000 crore over the next four years. The policy also offers purchase incentives for electric two-wheelers (up to ₹30K in the first year, calculated at ₹10K per kWh and capped at that level, reducing to ₹20K and then ₹10k in subsequent years), auto-rickshaws( fixed incentives of ₹50K in the first year, tapering to ₹40K and ₹30K over the next two years).

View: Delhi launched the first phase of its EV policy in 2020 which helped boost the share of electric models to 12% of all new vehicle sales in 2024. This policy is more comprehensive than earlier reports, making it a strong long-term demand catalyst for EV makers such as Tata Motors, Mahindra, Ola Electric, Ather and e-three-wheeler manufacturers. Incentives for sub-₹30 lakh EV cars can expand mass-market adoption, while mandatory electrification of two-wheelers, autos and fleets creates a structurally large replacement opportunity. However, the ban on the sale of fossil fuel two-wheelers from 2028, is negative for manufacturers such as Bajaj Motors, TVS, etc., which may be offset by increased sales of their electric two-wheelers. According to Vahan Database, in FY26, Delhi share in domestic 2W registration stands at 2.7% while share in total EV registrations stand at ~3%.

Impact: Neutral

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere