Big relief for EV buyers! Delhi now offers tax waiver on electric cars up to ₹30 lakh

The Delhi government on Monday approved a new EV policy that offers a major incentive for buyers of electric cars and two-wheelers.

Under the policy, a 100% exemption of road tax and registration fees will be provided to all pure electric four-wheelers with an ex-showroom price of ₹30 lakh or less and registered with the national capital.

People buying electric two-wheelers is also set to receive benefits. The government will offer a subsidy of ₹30,000 in the first year, ₹20,000 in the second year and ₹10,000 in the third year.

The move is aimed at increasing the adoption of electric vehicles and reducing vehicular pollution in the city. The waiver of these upfront charges expects to encourage more consumers to shift from petrol and diesel vehicles to electric alternatives, while also supporting the national capital's clean mobility and emission-reduction goals.

When will the new EV policy be implemented?

The new EV policy, approved by the Delhi Cabinet, will come into effect from July 1, Chief Minister Rekha Gupta said at a press conference. She also added that the development marks a major step towards making Delhi a pollution-free city by March 31, 2030, news agency PTI reported.

Around ₹15,000 crore will be invested under the new policy over the next four years to promote electric mobility and reduce vehicular pollution in the national capital, as announced by the CM Gupta.

She also said that the new policy places special emphasis on the transport sector and outlines a roadmap for the phased transition from conventional fuel-powered vehicles to electric vehicles.

No subsidy for hybrid vehicles

An official told the news agency that hybrid vehicles, which use a combination of an internal combustion engine (petrol or diesel) and an electric motor, will not be eligible for any subsidy under the new policy. Only pure electric vehicles will qualify for the incentives.

A dedicated online portal will be developed to enable applicants to apply for EV-related incentives under the policy, PTI reported.

The government added the policy also envisages expansion of charging infrastructure, vehicle scrapping facilities and other measures to accelerate the transition to electric mobility across the city.

Incentives announced for three-wheelers and trucks

The policy also states that the buyers of electric three-wheelers will be eligible for incentives of ₹50,000, ₹40,000 and ₹30,000 in the first, second and third years, respectively, the news agency reported.

Meanwhile, buyers of N1 category electric trucks, which are light commercial vehicles used for transporting goods, will be eligible for a purchase incentive of up to ₹1 lakh, according to an official.

To encourage the replacement of older, more polluting vehicles, the policy also provides a ₹1 lakh scrapping incentive for owners of BS-IV or below standard four wheelers who scrap their vehicles and purchase an electric vehicle.

As part of the policy, only electric autorickshaws will be registered in Delhi from January 1, 2027. Similarly, only electric two-wheelers will be registered in the national capital from April 1, 2028, while registration of new petrol and CNG two-wheelers will be phased out.

According to data cited by PTI, total vehicle registrations in Delhi rose by 17.9% to 8.50 lakh units in FY 2025-26, up from about 7.21 lakh units in 2024-25. Between the financial years 2019-20 and 2025-26, more than 4.07 lakh EVs were registered in the city.