In order not to lose momentum in electric vehicle (EV) adoption in Delhi, the Delhi government has extended its current EV policy by an additional three months. Meanwhile, the city waits for a new EV Policy 2.0 eagerly.
The interim extension is designed to prevent the market from breaking up by using subsidies and incentives, thus supporting Delhi’s Green Mobility Vision.
Details of Policy Extension
The Kejriwal-led Delhi Cabinet gave its approval to extend the existing Electric Vehicle Policy until June 30, 2025, which was originally announced in August 2020.
However, the policy formally lapsed in December 2024. This short-term extension means that both buyers and producers can carry on getting grants and exemptions they had under the old policy until a new framework is implemented for EVs in Delhi.
By doing so, the government had ensured that there would be no vacuum of policy that might have hindered EV sales, infrastructure building, and deteriorate buyers’ confidence.
Officials said work on the much-anticipated Delhi EV Policy 2.0 is now in its final stages, with updated targets and more nuanced incentives expected to be announced later this year.
Highlights of Subsidies and Incentives
In this latest policy extension, existing incentives will remain in place. For instance, buyers of electric two-wheelers and three-wheelers will be receiving ₹10,000 per kWh of battery capacity consideration, which will eventually be capped at ₹30,000. Also part of the policy extension, tax exemptions for new vehicles and exemption from vehicle traffic charge will continue.
In the next-generation EV Policy 2.0, it is proposed that even bigger subsidies can be provided. For example, women buying electric bicycles may receive subsidies of ₹12,000 per kWh of battery capacity, up to a maximum subsidy limit of ₹36,000 per vehicle. The aim of this move is to encourage more females to join the EV transition.
Another feature of the policy extension is that it keeps the power subsidy scheme. Households using under 200 units of electricity per month will be eligible to receive free electricity, while those who use between 201 and 400 units will get a half-price subsidy up to a cap of ₹800 per month.
EV Adoption So Far and Why the Extension Matters
Delhi has become the country’s leader in electric vehicle adoption. It is now 12% of all registered vehicles in the capital. Since August 2020, over 2.87 lakh electric vehicles, including approximately 1.19 lakhs three-wheelers and 1.19 lakhs two-wheelers, have been registered.
The three-month extension of the EV policy is critical for maintaining the current momentum. Inaction on this important legislation may have placed both sides in a state of uncertainty, which could have hindered future growth in this market.
Until the Transition to the New EV policy 2.0 happens, the existing incentives will be maintained by the government in support of efforts made under this public policy framework for a new technology transformation. This ensures that we continue moving toward sustainable and clean urban mobility solutions in the capital.
Delhi’s EV policy will be extended until June 2025 so that the momentum to adapt to electric vehicles will not waver or stall. With the government preparing to announce the second generation of its EV policy, all stakeholders are looking to gain more benefits and help to see the future of EVS in the country.
