Delhi's New EV Policy Offers Major Tax Breaks for Electric Cars and Hybrids
Delhi EV Policy: Tax Waivers for Electric Cars, Hybrid Incentives

Delhi Government Unveils Draft EV Policy with Major Incentives for Clean Mobility

The Delhi Government has proposed significant incentives for electric vehicle buyers under its new draft EV policy, aiming to accelerate the adoption of cleaner transportation options in the national capital. The draft Delhi Electric Vehicle Policy 2026-2030, released recently, includes a full waiver on road tax and registration fees for select electric car models until March 31, 2030.

Eligibility Criteria for Tax Exemptions

According to the draft policy, the benefit of a complete waiver on road tax and registration charges will apply exclusively to electric cars priced at Rs 30 lakh or below, ex-showroom, when registered in Delhi. This measure is designed to make electric vehicles more affordable for a broader segment of consumers, encouraging a shift away from fossil fuel-based cars.

However, the relief will not extend to higher-priced models. The draft clearly specifies that electric cars priced above Rs 30 lakh will not be eligible for any exemption on road tax or registration fees, ensuring that the incentives target more accessible vehicle categories.

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Incentives for Hybrid Vehicles and Three-Wheelers

In addition to the benefits for electric cars, the policy also outlines incentives for hybrid vehicles. Strong hybrid models are set to receive a 50 per cent exemption on road tax and registration charges, reflecting a broader push towards cleaner mobility options that include transitional technologies.

The draft includes a significant regulatory step for the three-wheeler segment. From January 1, 2027, only electric three-wheelers will be allowed to be newly registered in Delhi, marking a decisive move to electrify this crucial part of the city's transport ecosystem and reduce emissions from commercial vehicles.

Policy Objectives and Public Consultation

According to the government, this new policy builds on the progress made since the earlier EV policy was introduced in 2020. The focus remains on reducing vehicular emissions, improving air quality, and strengthening the overall ecosystem for electric mobility in Delhi. The policy will come into effect once officially notified after the consultation process.

The government has opened the draft for public consultation and invited feedback over the next 30 days. The earlier EV policy, launched in August 2020, had a three-year term and has been extended multiple times while the updated framework was being finalised, indicating a sustained commitment to electric mobility initiatives.

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