Delhi Draft EV Policy 2026: 100% Road Tax Waiver and April 2028 Ban on Petrol Two Wheelers

The Delhi government has officially released the much awaited Delhi Draft EV Policy 2026 (EV Policy 2.0), signaling a massive shift toward zero emission mobility. Aiming to make Delhi the EV capital of India, the new policy proposes aggressive mandates, including a total ban on the registration of internal combustion engine (ICE) two wheelers by April 2028.

Key Highlights of the Delhi EV Policy 2.0

The draft policy focuses on affordability and mass market adoption by offering significant financial reliefs for electric car buyers and commercial operators.

1. 100% Road Tax Waiver for Electric Cars

In a major win for car buyers, the government has proposed a 100% exemption on road tax and registration fees for all electric cars priced up to ₹30 lakh (ex showroom).

• Validity: This exemption will remain in effect until March 31, 2030.

• Luxury Cap: Electric vehicles priced above the ₹30 lakh threshold will not be eligible for these waivers, ensuring the subsidy benefits middle-class buyers rather than the luxury segment.

2. The End of Petrol Two-Wheelers?

One of the most ambitious proposals in the draft is the phased transition of two wheelers.

• The Deadline: Starting April 1, 2028, only electric two wheelers will be allowed for registration in Delhi.

• Three-Wheelers: For three wheelers, the transition is even faster, with a proposed mandate for 100% electric registration starting January 1, 2027.

3. Subsidies and Scrappage Incentives

The government is pivoting from "direct purchase incentives" to a scrappage-linked model.

• Subsidies: Direct incentives starting from ₹10,000 are proposed for various categories.

• Scrappage Bonus: To claim the highest subsidy brackets, owners must scrap their old, polluting BS-IV or older petrol/diesel vehicles.

• Retrofitting Grant: A grant of ₹50,000 has been proposed for owners who choose to convert their existing ICE cars into electric vehicles using certified kits.

Strategic Shift: Focus on Pure EVs over Hybrids

While previous iterations considered benefits for hybrid vehicles, the 2026 draft shifts focus almost entirely to Pure Battery Electric Vehicles (BEVs). While strong hybrids may receive a partial 50% road tax waiver, the primary financial muscle of the state is being redirected toward zero-emission technology.

How to Provide Feedback

The Delhi Government has invited public feedback on this draft. Residents, industry stakeholders, and environmental experts have 30 days to submit their comments and suggestions via the official Transport Department website or email.

Expert Take: "By linking subsidies to scrappage and capping luxury tax waivers, Delhi is ensuring that every rupee of taxpayer money leads to a tangible reduction in road emissions."