Delhi EV Policy 2.0: Tax Relief for EV Cars Under ₹30 Lakh

The Delhi Government has approved the Delhi EV Policy 2.0 with a ₹15,000 crore budget to boost electric vehicle adoption. The Chief Minister, Rekha Gupta, announced the new policy to promote cleaner mobility across the national capital. The policy is expected to take effect from July 1, 2026, and will remain valid until March 31, 2030.

For car buyers, the biggest announcement is that electric cars priced below ₹30 lakh will be exempt from road tax and registration charges. This will help reduce the overall on-road cost. However, electric cars priced above ₹30 lakh and hybrid vehicles will not receive these benefits.

Benefits for Electric Car Buyers

The new policy aims to make electric cars more affordable by offering tax exemptions and scrappage incentives. Buyers of eligible electric cars can save on upfront costs through road tax and registration fee exemptions. Owners of older BS-IV petrol cars and diesel cars can also receive a ₹1 lakh scrappage incentive when switching to an electric vehicle.

Key benefits for car buyers include:

• No road tax on electric cars priced below ₹30 lakh.
• No registration fee for eligible electric cars.
• ₹1 lakh scrappage incentive for BS-IV and older four-wheelers switching to an EV.
• A dedicated online portal for claiming EV incentives.
• 32,000 DC fast charging points to be installed across Delhi by 2030.

Delhi Govt. Offers ₹1 Lakh Scrappage Incentive

The Delhi Government has introduced a ₹1 lakh scrappage incentive for owners of BS-IV and older four-wheelers. The incentive will be available to buyers who scrap their old vehicle and purchase a new electric car. The move is aimed at replacing older, more polluting vehicles with zero-emission alternatives.

Along with financial incentives, the Delhi Government plans to install 32,000 DC fast chargers across the city over the next four years. The expanded charging network is expected to make EV ownership more convenient for buyers.

What Car Buyers Should Know?

The benefits under the new policy apply only to electric cars priced below ₹30 lakh. Buyers of premium EVs above this price will continue to pay road tax and registration charges as per existing rules.

The Delhi Government has confirmed that hybrid vehicles are not eligible for any subsidy or tax exemption under the new EV policy. This includes both strong hybrids and upcoming plug-in hybrid models. Additionally, the policy does not specify any scrappage benefits for older electric vehicles.