Delhi Govt Plans To Double Two-Wheeler EV Subsidy In New Policy
The present policy, extended till March 2026, offers a Rs 5,000 subsidy per kilowatt hour of battery capacity, which can go up to Rs 30,000.
Published : October 13, 2025 at 7:36 PM IST
New Delhi: To boost sales of electric two-wheelers and expedite its adoption, the Delhi government is planning to double incentives in its second electric vehicle (EV) policy. Due early next year, the policy is expected to offer further subsidies, tax concessions and better charging infrastructure for electric two-wheelers, which are widely used by gig workers.
The present EV policy offers a subsidy of Rs 5,000 per kilowatt hour of battery capacity, which can go up to Rs 30,000. A senior official of the transport department said the government is planning to double the limit. Similarly, three-wheeler EVs currently get a subsidy of Rs 30,000 per vehicle, regardless of total cost and battery capacity. However, the subsidy is no longer applicable for four-wheelers as it was available only for the first 1,000 EVs that were registered under the scheme.
EVs are costlier than hydrocarbon vehicles, but are cheaper in the long run due to their lower maintenance costs. The official said the aim is to reduce the price gap between petrol vehicles and EVs. "The subsidy is likely to double to Rs 10,000 per kilowatt hour of battery capacity for electric two-wheelers," he added.
As the government has extended the EV policy till March next year, the new policy will bring even more tax concessions to those who scrap their old internal combustion engine vehicles and adopt EVs. "This is being seen as a double benefit. It can reduce the number of old polluting vehicles and increase the use of EVs," the official said.
Keeping in mind gig workers, especially delivery partners, the policy is likely to introduce low-interest rate loan schemes to make electric bikes more accessible to them. The government is also planning to install charging points near markets and high-delivery zones, to facilitate the commercial vehicle users.
About 22,646 EVs were registered, and 8,684 EVs were purchased in 2024. However, petrol-run bikes still dominate the segment as over 2.55 lakh new vehicles are expected to hit the roads this year. This figure does not include the Diwali sale, when more vehicles are purchased.
The new EV policy is expected to be implemented in the first quarter of 2026 after public consultation. Transport Minister Pankaj Singh had earlier said Rs 140 crore as a subsidy would be distributed to eligible owners after verification. The transport department will start the process soon, and a portal is being prepared for the same.
Earlier, the Delhi High Court had ordered the government to take steps to distribute the promised subsidy to customers, saying that procedural hurdles cannot be used as an excuse for delay in payment.
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