Delhi EV Policy 2.0: ₹1 Lakh Incentive for Cars & “Retrofit” Boost
As of January 7, 2026, the Delhi government is in the final stages of launching its Electric Vehicle (EV) Policy 2.0. This revamped framework is described by Transport Department officials as the city’s “most ambitious” push to date, shifting focus from just new sales to transforming the existing fleet of petrol and diesel cars.
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While the previous policy has been extended until March 31, 2026 (or until the new one is officially notified) to prevent a gap in benefits, the draft for 2.0 introduces several groundbreaking incentives.
1. Key Consumer Subsidies & Targets
The new policy aims to make EVs affordable for middle-income households, with a specific focus on high-volume segments like two-wheelers.
| Vehicle Type | Standard Subsidy | Special Incentives |
| Two-Wheelers | ₹21,000 per vehicle | ₹30,000 for women buyers |
| Four-Wheelers | ₹10,000 per kWh | Capped at ₹1 Lakh (First 27,000 cars < ₹25L) |
| Retrofitting | ₹50,000 incentive | For first 1,000 petrol/diesel to EV conversions |
| E-Autos/3Ws | Substantial hikes | Incentives for battery-swapping stations up to ₹6 Lakh |
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Adoption Target: The goal for electric two-wheelers has been more than doubled, from 5 lakh to 12 lakh vehicles over the next three years.
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Mass Market Focus: Four-wheeler subsidies are strictly for cars priced below ₹25 lakh, signaling a move away from subsidizing luxury EVs.
2. The “Retrofit Revolution”
In a first-of-its-kind move, Delhi will pay you to not scrap your car.
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The Problem: Many owners of luxury or well-maintained cars face mandatory scrapping (10 years for diesel, 15 for petrol).
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The Solution: Policy 2.0 offers ₹50,000 to convert these “end-of-life” vehicles into EVs. This allows owners to keep their cars while complying with NGT emission norms.
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3. Infrastructure & Innovation
To support the influx of over a million new EVs, the government is focusing on grid stability and local tech.
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Battery Storage: Plan to add 2.5 GWh of Battery Energy Storage (BESS) by 2030 to manage peak charging loads.
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Charging Network: Aiming for 5,000 public charging stations by 2030, with a focus on residential societies and “neighborhood charging.”
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R&D Surge: The Research & Development fund is set for a massive leap from ₹5 crore to ₹100 crore to foster local innovation in battery cells and BMS.
4. Financial Ease: 5% Interest Subvention
To lower the entry barrier, the government will cover 5% of the loan interest for eligible EV buyers. This “Interest Subvention Scheme” is designed to assist small fleet operators and middle-class families who find the upfront cost of EVs prohibitive.
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