Key facts
- Delhi EV policy approved with ₹15,000-crore budget
- Only electric auto-rickshaws permitted from 2027
- Petrol two-wheelers phased out from 2028
- Zero road tax for electric cars
- No subsidies for hybrid vehicles
The Delhi Cabinet has approved a new electric vehicle policy with a ₹15,000-crore budget, setting firm timelines that will fundamentally change the capital's transport landscape — only electric auto-rickshaws from 2027 and a complete end to new petrol two-wheelers from 2028.
The policy also grants full road tax exemption to electric cars, making EV ownership significantly cheaper upfront in the capital. In a pointed departure from national trends, hybrid vehicles have been explicitly excluded from subsidies — signalling that Delhi's push is for pure electric technology, not transitional solutions. The government has framed the policy as essential to combat the city's chronic air pollution crisis, which ranks among the worst of any major world city.
Auto-rickshaws are a lifeline for last-mile connectivity across Delhi, and the 2027 deadline for new electric-only registrations will pressure the city's large fleet operators and individual drivers to plan transitions. Two-wheeler owners — who make up a substantial share of vehicle registrations — face a harder shift, with no new petrol bikes or scooters permitted from 2028 onwards.
The ₹15,000-crore budget signals the scale of state investment envisioned to support charging infrastructure, subsidies for buyers, and the retooling of the auto sector. Policy analysts noted that Delhi's timelines are among the most aggressive set by any Indian city and will be closely watched as a test case for urban EV transitions across the country.