Industry leaders on Tuesday said that the approval of the Delhi Electric Vehicle (EV) Policy 2026 is a forward-looking policy initiative that can accelerate the transition towards sustainable urban mobility while strengthening investment, manufacturing and innovation across India's electric mobility ecosystem.

Leading industry chamber PHDCCI said it will work closely with policymakers, and industry stakeholders to support effective implementation of the policy and facilitate the development of a robust, competitive and sustainable electric mobility ecosystem that contributes to economic growth, industrial transformation and environmental sustainability.

“The policy reinforces the role of clean mobility as a key driver of Delhi's future economic growth and sustainable urban development. By providing greater policy certainty, it is expected to improve the investment climate, accelerate innovation in electric mobility technologies, expand domestic manufacturing, and create employment across the EV ecosystem,” said Rajeev Juneja, President, PHDCCI.

At the national level, the policy aligns with India's broader objective of strengthening globally competitive manufacturing through the Make in India initiative, he mentioned.

The policy introduces fiscal incentives for electric vehicles, exemptions from road tax and registration charges for eligible vehicles, scrappage incentives for older vehicles, a significant expansion of charging infrastructure, and a phased transition towards electric mobility across various vehicle categories.

The government has also announced a proposed investment of around Rs 15,000 crore to support the development of the EV ecosystem during the policy period.

The policy extends well beyond promoting electric vehicle adoption and has the potential to stimulate investments across multiple sectors, including battery manufacturing, charging infrastructure, renewable energy integration, power distribution, electronics, automotive components, software solutions, fleet management, financing, recycling and circular economy services.

The Delhi EV Policy 2.0 (running through 2030) introduces ambitious subsidies, scrappage benefits, and stricter mandates to promote greener transport.

These include 100 per cent waiver on road tax and registration fees for EVs priced up to Rs 30 lakh (ex-showroom); incentives of up to Rs 30,000 for electric two-wheelers and up to Rs 50,000 for three-wheelers; and up to Rs 1 lakh incentive for scrapping old BS-IV or older cars.

No petrol motorcycles/scooters can be registered after March 31, 2028, and new CNG auto-rickshaw registrations are set to stop at the end of 2026.

“As electric vehicle adoption accelerates, demand is also expected to rise for advanced battery technologies, power electronics, semiconductors, charging hardware, digital payment platforms, predictive maintenance applications, and intelligent energy management solutions", said Dr Ranjeet Mehta, CEO and Secretary General, PHDCCI.