Electric cars priced up to Rs 30 lakh get a full road tax and registration waiver, while EVs above that threshold receive nothing.
Strong hybrids under Rs 30 lakh qualify for 50 per cent tax relief, and scrappage of an old BS-IV vehicle can unlock an additional Rs 1 lakh.
A Policy Built Around Where the Market Actually Sits
Delhi has long been one of India's more proactive states on clean mobility, but the newly released Draft EV Policy 2.0 for 2026–2030 is arguably its most structured attempt yet. The draft was released with a total outlay of Rs 3,954.25 crore and is open for public comments until May 10, 2026, meaning its final shape can still change. The intent, however, is clear from the outset.
Of the total budget, Rs 1,236.25 crore has been allocated for purchase incentives, Rs 1,718 crore for scrapping incentives, and Rs 1,000 crore for charging infrastructure. That breakdown tells you quite a bit about where the government expects resistance, and where it plans to spend its way through it.
The Rs 30 Lakh Line That Divides Winners From Bystanders
The headline measure of the draft is the tax exemption structure for passenger cars. Electric cars priced up to Rs 30 lakh ex-showroom and registered in Delhi would be eligible for a complete waiver on road tax and registration fees, while EVs priced above this threshold would not receive any such exemption.
Road tax and registration charges in Delhi can account for 8 to 12 per cent of a vehicle's on-road price, so eliminating them entirely reshapes the buying calculation for mainstream buyers in a very real way.
The consequence for luxury electric vehicles is equally direct. On-road prices of high-end electric vehicles such as the BYD Seal, BMW iX1 LWB, Tesla Model Y, MG Cyberster, and Porsche Macan EV will not benefit from any exemption under this draft. The government has made a deliberate choice to concentrate incentives in the segment where price sensitivity is highest.
Strong Hybrids Earn a Place in the Framework
One of the more debated aspects of the draft is its treatment of hybrid vehicles. The policy proposes a 50 per cent reduction in road tax and registration charges for strong hybrid vehicles within the same price range and validity period.
Cars offering a strong hybrid powertrain under Rs 30 lakh include the Maruti Grand Vitara and Invicto, Honda City e:HEV, Toyota Hyryder, and Toyota Innova Hycross.
In the recently concluded financial year 2026, hybrid vehicles accounted for an 8.21 per cent market share, while EVs rose from 2.61 per cent to 4.25 per cent. The partial relief for hybrids acknowledges their role as a practical bridge technology while EV infrastructure continues to expand.
Scrap Your Old Car, Gain Up to Rs 1 Lakh
The policy does not rely on tax waivers alone. The draft proposes a Rs 1 lakh scrapping incentive upon purchase of a new electric car priced up to Rs 30 lakh, provided the purchase is made within six months of receiving a Certificate of Deposit from an authorised scrapping facility. This applies to Delhi-registered BS-IV and below vehicles, and is limited to the first 1,00,000 eligible applicants.
Payments are to be made directly via bank transfer, in line with the PM E-Drive framework.
Firm Timelines Signal a Broader Shift
Beyond the financial incentives, the draft lays down hard deadlines. From January 1, 2027, only electric three-wheelers will be allowed for new registrations in Delhi, followed by a ban on new petrol two-wheeler registrations from April 1, 2028.
School buses must achieve 10 per cent electrification by year two, 20 per cent by year three, and 30 per cent by March 2030.
On infrastructure, the draft envisions raising the number of charging points from about 9,000 today to roughly 36,000 by 2030, alongside the planned introduction of 11,000 electric buses by 2028. Delhi Transco Limited will act as the nodal agency, supported by a dedicated digital portal for approvals and monitoring.
Taken together, this is a policy that understands where Delhi's car market currently stands and nudges it, rather firmly, in the direction it needs to go.
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