Delhi rolls out new EV policy; Here is what global investment firms said on the move

The Delhi government on Monday approved a new electric vehicle (EV) policy aimed at reducing vehicular pollution and accelerating the transition to cleaner transport in the national capital.

It seeks to transform Delhi into a pollution-free capital through zero-emission transport and will remain in force till March 31, 2030.

Around 30,000 EV charging points will be set up across the city to expand charging infrastructure, and the government is committing over ₹7,000 crore over the next four years to drive this transition.

Key highlights of Delhi’s EV policy:

• 100% road tax plus registration fee exemption for electric vehicles till 2030
• Policy to remain in force from July 1, 2026, to March 31, 2030
• Electric cars under ₹30 lakh (ex-showroom) will get a full exemption till March 31, 2030
• ₹15,000 crore total investment by the government under the policy
• 30,000 EV charging points will be installed across Delhi during the policy period
• All incentives will be transferred directly to beneficiaries' bank accounts through Direct Benefit Transfer
• Only electric three-wheelers to be registered from January 1, 2027
• Only electric N1 goods carriers (mini-trucks) to be registered from January 1 next year
• Only electric two-wheelers registration from April 1, 2028
• 30% of school buses to be electric by 2030
• Hybrid vehicles have been kept outside the scope of this policy

What global investment firms said on EV policy

HSBC in a note said that the proposed policy may bring forward internal combustion engine (ICE) two-wheeler and three-wheeler purchases, while shifting to electric two wheelers and electric three wheelers demand towards policy’s first year.

Morgan Stanley said that the 2026 Delhi EV Policy, prescribes sizable incentives for electric two wheelers, electric three wheelers, small commercial vehicles and buses.

It expects a strong pushback to this ban from dealers and original equipment makers (OEMs)

Citi said that as per Delhi EV policy, only electric-autorickshaws will be registered in Delhi from Jan 2027 and only electric two wheelers from April 2028. It said that relatively underdeveloped charging infra and lack of e-motorcycle models will replace exiting ICE models.

Citi added that the execution would be tough given Delhi’s porous borders with Haryana and Uttar Pradesh.

Nomura noted that the EV policy signals clear support for EVs and added that Mahindra & Mahindra, Tata Motors PV, Ather Energy, and Sona to be potential beneficiaries from the policy.