If you live in Delhi and are planning to buy a new vehicle, then this news will definitely bring a smile on your face. Stepping up its fight against pollution, the Delhi government has made the draft of its new EV policy public. The biggest feature of this new policy is the huge subsidy and complete tax exemption available in it. This time, the government has created such a subsidy structure that you can get a direct benefit of up to ₹ 1.5 lakh on scrapping your old car and buying a new electric car (this includes both subsidy and tax savings). Delhi government has made the draft of this policy public to seek suggestions from citizens and experts. The clear objective of the government is to free Delhi from vehicular pollution. After receiving suggestions from the public and incorporating necessary changes, this policy will be officially implemented. This policy will remain in force till March 31, 2030.
1. Electric two-wheelers
Two-wheelers constitute the largest share of vehicles plying on Delhi roads; Therefore, the government has announced the highest incentive in this category. A subsidy of ₹10,000 per kWh (subject to a maximum of ₹30,000) will be given on vehicles purchased in the first year. This means that if you buy a scooter with a larger battery, you can directly save up to ₹30,000. Additionally, if you get your old petrol-powered vehicle (BS-IV standard or older) scrapped, you will get an additional incentive of ₹10,000. Also, both road tax and registration fees will be completely waived off on vehicles priced up to ₹2.25 lakh.
2. Personal Electric Cars
Although there is no direct cash incentive for cars in the new policy, the benefits associated with vehicle scrapping are truly historic. If you scrap your old BS-IV (or older) car and buy a new electric car in its place, the government will give you a scrapping incentive of ₹1,00,000. This benefit will be applicable on cars with ex-showroom price up to ₹30 lakh and will be available to the first 1,00,000 applicants. Additionally, for electric cars priced up to ₹30 lakh, both road tax and registration fees have been completely waived. At the same time, ‘Strong Hybrid’ cars have been given 50% tax exemption.
3. Three-wheelers and e-autos
This policy is no less than a boon for auto-rickshaw drivers in Delhi. A direct subsidy of ₹50,000 will be given on purchase of e-auto during the first year. Additionally, if you scrap your old CNG or BS-IV three-wheeler, you will get an additional benefit of ₹25,000. Not only this, 100% rebate on road tax and registration fees has also been given.
4. Commercial Loading Vehicle
The government has opened its coffers for small goods vehicles (known locally as ‘Chhota Hathi’—Category N1). A subsidy of ₹100,000 is available on purchases made during the first year. Additionally, there is an additional benefit of ₹50,000 on scrapping the old vehicle—taking the total potential savings to ₹1.5 lakh.
Subsidy will reduce over time
The Delhi government has adopted a ‘degressive model’, which means that the sooner the purchase is made, the more benefits will be available.
Two-wheelers: Subsidy will be given at the rate of ₹10,000/kWh in the first year, ₹6,600/kWh in the second year, and ₹3,300/kWh in the third year.
Three-wheeler: ₹50,000 in the first year, ₹40,000 in the second year, and ₹30,000 in the third year.
E-Truck: ₹100,000 in the first year, ₹75,000 in the second year, and ₹50,000 in the third year.
key terms
The entire subsidy amount will be deposited directly into your bank account and not through any middleman or agent.
Scrapping incentive can be availed only if you purchase a new EV (electric vehicle) within six months of scrapping your old vehicle. The scheme is applicable exclusively to vehicles that are registered in Delhi, and to buyers who are residents of Delhi.
It is worth noting that the main objective of this new policy of the Delhi government is to strengthen the EV charging infrastructure and bring the price of EVs at par with petrol-powered vehicles. Measures like huge subsidies, scrapping bonuses and road tax exemption will make buying electric vehicles extremely affordable for middle-class families.
