en.Wedoany.com Reported - The Delhi Cabinet has approved a new electric vehicle policy, planning to invest ₹150 billion over the next four years to drive the capital's transition to cleaner modes of transportation. The policy is expected to take effect on July 1, 2026, combining fiscal incentives, charging infrastructure expansion, and regulatory measures to boost EV adoption and reduce vehicle emissions.

This policy is part of the Delhi government's overall strategy to strengthen the city's electric mobility ecosystem, aiming to increase the share of electric vehicles among newly registered vehicles while supporting the construction of charging and battery swapping infrastructure in the national capital.

At the core of the new policy are incentives and infrastructure. The government will invest ₹150 billion over four years, with a package of measures including purchase incentives for EVs, support for expanding charging stations and battery swapping facilities, and initiatives to improve the overall EV ecosystem. The government stated that these measures are designed to make electric mobility more accessible to consumers and businesses. The policy also proposes a 50% exemption from road tax for strong hybrid vehicles priced at no more than ₹3 million, reflecting an approach that encourages cleaner mobility technologies. Reports indicate that extensive discussions were held on whether to include hybrid vehicles before the cabinet approved the final policy.

In addition to incentives, the policy introduces timelines for the gradual transition of various vehicle categories to electric power. From January 1, 2027, only electric models will be allowed for newly registered auto-rickshaws in Delhi. From April 1, 2028, the registration of new petrol and compressed natural gas (CNG) two-wheelers will be discontinued, making electric models the default choice for new buyers in these categories. Existing vehicles will continue to operate under current regulations.

The government has also set targets to significantly increase the share of EVs among newly registered vehicles by 2027, supported by sustained investment in charging infrastructure and policy measures aimed at reducing barriers to EV ownership. As demand for EVs and related technologies grows, the policy is expected to create new opportunities for component suppliers and charging infrastructure providers, solidifying Delhi's position as a key market in India's broader clean mobility transition.