Industry body ASSOCHAM has welcomed the Delhi government's new Electric Vehicle (EV) Policy, stating that it could serve as a model for other states while making electric vehicles more affordable and accelerating the shift away from polluting petrol and diesel vehicles. The policy, which came into effect on July 1, 2026, is expected to bring significant environmental and economic benefits.
ASSOCHAM Secretary General Highlights Benefits
In a conversation with ANI, ASSOCHAM Secretary General Saurabh Sanyal said, "ASSOCHAM applauds the EV policy which has been announced by the Delhi government. This will not only benefit the citizens of Delhi and NCR, but it will also give a start to all the other states of India." He emphasized that the policy addresses Delhi's severe air pollution problem, particularly during winter months, and will make electric vehicles popular in the region.
Key Features of the Delhi EV Policy 2026
The Delhi government approved the Delhi EV Policy 2026 on Monday, effective from July 1, 2026, and it will remain in force until March 31, 2030. The government estimates that more than Rs 7,000 crore will be invested directly over the next four years, while the overall benefit to citizens, including tax exemptions and EV infrastructure, is expected to exceed Rs 15,000 crore.
Scrappage Incentives for Old Vehicles
Owners replacing older petrol and diesel vehicles will benefit from scrappage incentives. Sanyal explained, "Those who have petrol cars or diesel cars... they will get value on residual value, their cost will be partially reimbursed and they will be able to buy new electric vehicles." Specific incentives include an additional Rs 10,000 for replacing BS-IV or older two-wheelers, Rs 25,000 for three-wheelers, up to Rs 50,000 for N1 commercial trucks, and Rs 1 lakh for four-wheelers shifting to electric cars. These are in addition to purchase subsidies.
Tax Exemptions and Affordability
The policy provides 100% exemption from road tax and registration fees for all pure electric vehicles. For four-wheelers, the exemption applies to vehicles with an ex-showroom price of up to Rs 30 lakh. Sanyal noted that this will make electric vehicles affordable for the common man, setting an example for the entire country.
Industry Reactions and Ecosystem Readiness
Ayush Lohia, CEO of electric three-wheeler manufacturer YOUDHA, welcomed the policy but stressed the importance of a supporting ecosystem. "A balanced and phased approach to transitioning from petrol-powered two-wheelers to electric mobility will be key to achieving Delhi's clean mobility ambitions," he said. He added that the proposed phase-out of new petrol-powered two-wheelers after 2028 is a significant step, but its success depends on expanding charging infrastructure, improving access to affordable EV financing, strengthening supply chains, and increasing consumer awareness. "If implemented effectively, Delhi can set a strong benchmark for electric mobility adoption across India," he added.
