Delhi Plans Higher EV Subsidies, Focus On Two-Wheelers

14 Oct 2025 CW Team

The current EV policy, launched in 2020 under the Aam Aadmi Party (AAP) government, offers a Rs 5,000 subsidy per kWh of battery capacity, capped at Rs 30,000 per vehicle. According to senior officials, the new policy may double this benefit, providing a stronger financial incentive for buyers.

However, the government has yet to clear pending subsidy dues of around Rs 1.4 billion under the existing policy. The original scheme also ended four-wheeler subsidies after the first 1,000 cars were sold.

The revised policy will likely include higher tax concessions for individuals who scrap their internal combustion engine (ICE) vehicles and switch to EVs. Officials described the move as a “dual win” — reducing the number of older, polluting vehicles while encouraging cleaner mobility.

To address one of the biggest challenges for commercial EV users, the policy will also mandate the installation of two-wheeler charging points in marketplaces and high-delivery zones, ensuring easier access for last-mile delivery operators and gig workers who rely heavily on electric scooters and bikes.

Delhi’s Broader Clean Mobility Vision

Last month, Chief Minister Rekha Gupta said that her government is working with stakeholders to develop a model Electric Vehicle Policy 2.0, aimed at improving Delhi’s air quality through large-scale EV adoption.

She further announced that all public transport vehicles in Delhi will be electric by the end of 2026, adding, “Every third vehicle in Delhi should be electric.”

The current EV policy, initially due to lapse in 2023, has been extended multiple times, with its present deadline set for March 2026. The new version is expected to be unveiled early next year and will form a crucial part of Delhi’s clean air and sustainability roadmap.

In a renewed push to accelerate electric vehicle (EV) adoption, the Delhi government is expected to introduce higher subsidies and expanded charging infrastructure for two-wheeler EVs in its upcoming Electric Vehicle Policy 2.0, The Times of India reported. The current EV policy, launched in 2020 under the Aam Aadmi Party (AAP) government, offers a Rs 5,000 subsidy per kWh of battery capacity, capped at Rs 30,000 per vehicle. According to senior officials, the new policy may double this benefit, providing a stronger financial incentive for buyers. However, the government has yet to clear pending subsidy dues of around Rs 1.4 billion under the existing policy. The original scheme also ended four-wheeler subsidies after the first 1,000 cars were sold. The revised policy will likely include higher tax concessions for individuals who scrap their internal combustion engine (ICE) vehicles and switch to EVs. Officials described the move as a “dual win” — reducing the number of older, polluting vehicles while encouraging cleaner mobility. To address one of the biggest challenges for commercial EV users, the policy will also mandate the installation of two-wheeler charging points in marketplaces and high-delivery zones, ensuring easier access for last-mile delivery operators and gig workers who rely heavily on electric scooters and bikes. Delhi’s Broader Clean Mobility Vision Last month, Chief Minister Rekha Gupta said that her government is working with stakeholders to develop a model Electric Vehicle Policy 2.0, aimed at improving Delhi’s air quality through large-scale EV adoption. She further announced that all public transport vehicles in Delhi will be electric by the end of 2026, adding, “Every third vehicle in Delhi should be electric.” The current EV policy, initially due to lapse in 2023, has been extended multiple times, with its present deadline set for March 2026. The new version is expected to be unveiled early next year and will form a crucial part of Delhi’s clean air and sustainability roadmap.

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