New Delhi EV Policy: No Road Tax For EVs Up To Rs 30 Lakh Proposed

The Delhi government’s upcoming EV Policy 2.0 could bring a more targeted approach to incentives for electric cars. The draft proposal suggests that while EV adoption will continue to be encouraged, not all segments will benefit equally. Under the proposed policy, electric cars priced at or below Rs 30 lakh (ex-showroom) will be eligible for a complete waiver on road tax and registration fees. There’s also a mention of strong hybrids, which could see a reduced benefit, with up to 50 per cent exemption instead of the full waiver offered to pure EVs.

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However, buyers looking at more expensive electric cars may not see the same advantages. The draft suggests that EVs priced above Rs 30 lakh could be left out of these tax benefits altogether.

The draft policy also introduces a scrappage-linked incentive. Buyers purchasing a new electric car priced under Rs 30 lakh could be eligible for a Rs 1 lakh incentive, provided they scrap an older BS-IV or older vehicle registered in Delhi.

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The benefit will be applicable only if the new EV is purchased within six months of receiving a Certificate of Deposit from an authorised scrapping facility. Notably, the incentive will be limited to the first 1 lakh eligible applicants.

As we reported earlier, the government has also proposed allowing only electric two-wheelers for new registrations from April 2028 onwards. If implemented, this would effectively put an end to the registration of new petrol scooters and motorcycles in the capital.

It’s worth noting that the policy is still in draft form, and changes could be made before it is finalised. If it goes ahead in its current form, the EV Policy 2.0 is proposed to remain in effect until March 31, 2030.