Delhi govt weighs incentives to convert old petrol, diesel cars into EVs

In addition to retrofitting incentives, the draft EV Policy 2.0 also proposes benefits for consumers who scrap end-of-life vehicles and purchase new electric cars.

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The Delhi government is considering incentives for retrofitting old petrol and diesel vehicles into electric vehicles (EVs) under its proposed EV Policy 2.0, as part of efforts to curb air pollution and accelerate EV adoption in the national capital. Officials told The Indian Express that the transport department has proposed an incentive of ₹50,000 for the first 1,000 vehicles that are retrofitted into EVs. The proposal is currently under consideration and will require Cabinet approval before implementation.Retrofitting involves replacing an internal combustion engine with an electric powertrain and battery system. While the idea has been explored earlier, high costs of retrofit kits — varying by vehicle model — have limited adoption. Officials said that the proposed incentive aims to make conversions more viable and encourage vehicle owners to reuse their cars instead of scrapping or selling them at lower values.According to government officials, the scheme could particularly benefit owners of premium and luxury vehicles. “Many owners of high-end cars such as Mercedes-Benz or BMW are reluctant to scrap their vehicles due to the low resale value they receive compared to the original purchase price. Incentives could make retrofitting a more attractive option,” an official said.Under current regulations, petrol vehicles older than 15 years and diesel vehicles older than 10 years are barred from operating in Delhi, following orders from the National Green Tribunal and the Supreme Court. Such vehicles are either scrapped at authorised Registered Vehicle Scrapping Facilities or sold outside Delhi after obtaining a no-objection certificate from the Transport department.

Draft EV Policy 2.0

In addition to retrofitting incentives, the draft EV Policy 2.0 also proposes benefits for consumers who scrap end-of-life vehicles and purchase new electric cars. The government is also looking to strengthen the EV ecosystem by increasing the research and development fund from ₹5 crore to ₹100 crore, with a focus on emerging technologies such as battery cells and charging solutions.Officials said that the policy aims to significantly boost EV penetration, particularly in the two-wheeler segment. Delhi currently registers around six lakh two-wheelers annually, of which about 50,000 are electric. The government is targeting an increase in electric two-wheelers from five lakh to 12 lakh over the coming years to achieve higher EV penetration.

What else is included?

Other proposed measures include raising incentives for battery swapping stations to ₹6 lakh from ₹1.2 lakh and introducing a safety star rating system for e-rickshaws and e-carts, which are already fully electric but largely dependent on lead-acid batteries.Former Transport department official Anil Chikkara said that the viability of retrofitting would depend on factors such as vehicle usage patterns and the availability of compatible kits. “It will vary across models and depend on whether the kits are offered with or without gearboxes,” he said.