Delhi Doubles EV Two-Wheeler Subsidies in New Policy Push: Targetting 2.5 Lakh Petrol Bike Dominance
In an aggressive move to combat vehicular pollution and accelerate the transition to clean mobility, the Delhi government is preparing to roll out the second phase of its Electric Vehicle (EV) policy early next year. The new framework will place a stronger emphasis on electric two-wheelers, aiming to narrow the significant market gap with conventional petrol bikes.
The upcoming policy is designed to be a game-changer for buyers by potentially doubling the existing EV two-wheeler subsidy limit. Officials are considering raising the incentive to ₹10,000 per kilowatt-hour of battery capacity. This sharp increase is intended to immediately lower the upfront purchase cost, making electric scooters and motorcycles financially competitive with their fossil-fuel counterparts.
Strategic Incentives for Commercial Fleet and Scrappage
A core focus of the new policy is on commercial users, particularly gig workers and delivery riders who rely heavily on two-wheelers. To support them, the government plans to introduce low-interest loan schemes and strategically expand the EV charging network by setting up e-bike charging points near major markets and high-demand delivery zones.
Furthermore, the policy will introduce a powerful dual incentive: additional tax benefits for individuals who choose to scrap their old internal combustion engine (ICE) vehicles and switch to an EV. This scrappage benefit is seen as a crucial step to simultaneously reduce pollution from aging vehicles and boost electric adoption rates.
The Challenge: Petrol Dominance vs. EV Growth
Despite the proactive push, the data highlights the sheer scale of the challenge:
Despite the growing EV adoption, petrol two-wheelers still dominate Delhi’s roads. In 2024, around 22,646 battery-powered vehicles were registered, while 8,684 pure EVs were sold. However, more than 2.5 lakh new petrol two-wheelers are expected to be added by the end of the year, not including festive season sales around Diwali.
This stark comparison underscores the necessity of aggressive, market-disrupting incentives in the new policy. The current EV policy has been extended until March of next year, and the revised version is expected to be formally implemented in the first quarter of 2026 following public consultation.
High Court Intervention on Pending Subsidies
Crucially, the government is also tackling administrative roadblocks that have hindered the EV transition. There are significant pending EV subsidy payments worth ₹140 crore that have caused frustration among early adopters.
Meanwhile, the government is also addressing delays in disbursing pending EV subsidies worth ₹140 crore. Transport Minister Pankaj Singh has said that the amount will be released once verification is complete. A new online portal is being developed to streamline the process. Recently, the Delhi High Court directed the government to ensure timely payment of pending subsidies, ruling that procedural delays cannot be used as an excuse for withholding benefits from consumers.
The High Court's firm directive puts pressure on the government to clear this backlog quickly, which is essential for rebuilding consumer trust and ensuring the success of the new, ambitious EV policy phase.