Delhi’s new EV policy may offer higher subsidies, more tax concessions, cheaper loans, and scrappage benefits

• ET Online

• Published On Oct 10, 2025 at 07:52 PM IST

Delhi is preparing its second Electric Vehicle policy for early next year. The government plans to boost incentives and improve charging infrastructure.

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The Government of Delhi is likely to roll out its second electric vehicle (EV) policy next year with higher subsidies, tax concessions and better charging infrastructure for two-wheeler EVs, according to the Times of India (TOI).As per the report would introduce more tax concessions for people who scrap their old ICE (internal combustion engine) vehicles and opt for EVs. “This scrappage-linked benefit is being seen as a dual win. It could reduce the number of older polluting vehicles and accelerate EV uptake,” an official told TOI.To make EVs more accessible to delivery and gig workers, the government plans to introduce low-interest financing options and install e-bike charging points near marketplaces and high-demand delivery areas—addressing one of the biggest challenges for commercial EV users.The current EV policy, originally set to expire this year, has been extended until March 2026 or until the revised version is officially notified. The new policy is expected to be unveiled in the first quarter of 2026 following public consultations.

Currently, buyers receive a subsidy of ₹5,000 per kWh of battery capacity, capped at ₹30,000. The government is reportedly considering doubling this limit to further narrow the price gap between petrol and electric two-wheelers. Under the existing policy, three-wheelers are eligible for a subsidy of ₹30,000 per vehicle, while benefits for four-wheelers were limited to the first 1,000 registrations and are no longer applicable.

Despite steady growth in EV registrations, conventional vehicles continue to dominate the roads. Government data shows that in 2024, Delhi saw 22,646 battery-operated vehicles registered and 8,684 pure EVs purchased. In 2025, these numbers shifted to 5,906 and 21,963, respectively. However, petrol-powered two-wheelers still far outnumber EVs, with over 2.55 lakh new registrations this year—excluding expected Diwali season sales.Meanwhile, the government still needs to clear pending EV subsidy payments worth ₹140 crore. Transport Minister Pankaj Singh recently said that the dues would be released after verification, with a dedicated portal being developed for the process. The Delhi High Court has also directed the government to expedite the disbursement, stating that procedural delays cannot be used to withhold payments.