• Source:JND
Add as a preferred

Delhi, India’s capital and home to approximately 33 million people, makes yearly headlines due to its poor air quality. This urbanization challenge does not only hamper the quality of life of inhabitants but is also counterproductive to positioning India as a global business destination. Thus, it required radical solutions.

Delhi's Electric Vehicle (EV) Policy 2.0, introduced in March 2025 is a big, bold step to solve this mammoth problem. Taking inspiration from the 2020 policy, this updated framework is expected to accelerate the adoption of electric two-wheelers through a combination of financial incentives, infrastructure development, and public awareness initiatives.

At the heart of Delhi’s new EV Policy is the target to have 95% of new EV vehicle registrations by 2027. Since 67% vehicles of approximately 8 million vehicles plying on Delhi roads in 2022-23 were two-wheelers, this will be the most impacted segment once the new policy comes into effect.

Also read: MG Windsor Pro EV Crosses 8000 Bookings, Prices Hiked By Rs 60000

The registration of new ICE or CNG two wheelers will not be possible after August 2026. To be sure, the current draft does not state any timeline for getting the currently on-road ICE two wheelers to move out. Given the size and relevance of the two-wheeler segment in Delhi, there will be a natural rise in adoption of EV two-wheelers. 

Several industrial and academic studies have already established that EVs score over traditional ICE based vehicles in terms of emission as well as long term cost of operation. Thus, Delhi’s Government’s strategic move is a welcome step towards building future ready urban mobility solutions.

To make this ICE/CNG to EV transition a success, the Delhi Government has also announced several consumer and industry support initiatives that make EVs affordable and accessible for lower- and middle-income groups who mostly ride two-wheelers for daily transportation. Let us take a look at these steps. 

Financial Incentives and Support

The upfront high cost of EV two wheelers has been a concern for some consumers who were willing to switch to EVs due to its operational cost efficiency. The new policy offers a subsidy of Rs 5,000 per kWh for electric two-wheelers. It also provides exemptions on road tax and registration fees. Thus, the upfront cost of EV two-wheelers will be more in sync with their outgoing ICE/CNG counterparts and consumers can easily switch to a cleaner way to commute. 

Charging Infrastructure Density 

Another major obstacle towards adoption has been the comparative shortage of charging infrastructure. However, over the last few years, there has been a significant growth in changing stations in Delhi-NCR region. Moreover, the new Delhi EV policy encourages installation of additional charging stations across the city, including fast charging stations at key locations.

Any new residential and commercial construction will also need to mandatorily include EV charging facilities. To support these initiatives, the Government is setting up a State EV Fund, financed through green levies and pollution cess. 

Some other initiatives under the Delhi EV Policy 2.0 are focused on industrial skill development to support the growth of EV ecosystem and deployment of over 3000 EV scooters and cycles at high footfall locations to reduce traffic and environmental impact.

These steps represent a comprehensive approach to transforming urban mobility through the promotion of electric two-wheelers. By combining ambitious adoption targets with financial incentives, infrastructure development, and skill development programs, the policy is expected to establish Delhi as a hub for electric mobility in India.

If the outcomes are positive, this could quickly become a model for other metropolitan and emerging industrial cities which need to reduce pollution and embrace sustainable transportation solutions.

Disclaimer: This article is authored by Yogesh Bhatia, MD, and CEO of LML. All views are personal.