New Delhi will roll out an electric vehicle policy with a four-year outlay of 150 billion rupees to spur electric two-wheelers, cars, small trucks, and the development of charging infrastructure.

Under the policy, electric cars up to Rs 30 lakh will enjoy a 100% exemption from road tax and registration charges, while strong hybrid incentives are removed.

A phased rollout sets January 1, 2027 as the start for registrations of electric autorickshaws only, followed by April 1, 2028 for electric two-wheelers, with petrol and CNG two-wheelers phased out.

Officials frame the program as a step toward cleaner air and better environmental safety, aiming to improve residents’ quality of life.

Industry reaction was broadly positive but cautious, with automakers viewing the policy as a potential benchmark and noting the shift from incentives to mandate-driven market transformation.

Hybrids are not subsidized in the new framework, though they are discussed as bridging fuel efficiency and emissions; BEVs receive policy benefits, while hybrids do not rely on external charging.

Experts foresee environmental gains from reduced emissions and expanded EV charging networks, alongside stronger support services for owners.

Future plans include enhanced air quality monitoring and additional incentives to cut dependence on traditional cars and ease congestion.

Analysts expect the policy to spur investments across manufacturing, charging infrastructure, battery production and recycling, and EV financing, while emphasizing execution risks like charging rollout and grid readiness.

Incentives are directly deposited into beneficiaries’ bank accounts.

Subsidies taper over time, making early-year purchases most advantageous for buyers.

While hybrids are currently excluded, officials have discussed extending incentives to them, though no subsidies are included in the final policy.