Delhi EV policy 2.0: New rules may restrict sale of subsidised vehicles for five years

The Delhi government is likely to introduce its new Electric Vehicle (EV) Policy 2.0 with several revised provisions, including restrictions on the resale of subsidised electric vehicles. The proposed policy, drafted after incorporating public feedback, is expected to be presented for Cabinet approval in an upcoming meeting chaired by Chief Minister Rekha Gupta on May 26.

Five-year restriction on sale

According to the proposal, as reported by news reports, buyers who avail government subsidies while purchasing an electric vehicle may not be allowed to sell or transfer the vehicle for five years. The government has suggested withholding No Objection Certificates (NOCs) for the transfer or re-registration of such subsidised EVs, including transfers to other states. However, the proposal is yet to receive final approval from the Cabinet.

Final policy draft

The Delhi Transport Department had released the draft EV Policy 2.0 in April and sought public suggestions until May 10. Officials said more than 700 responses were received. Following consultations, the government prepared a revised final draft with minor modifications after reviewing public feedback.

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Subsidy eligibility and claims

The proposed policy also outlines a structured subsidy framework. Buyers seeking EV subsidies will have to apply within 30 days of vehicle registration. The subsidy amount will be transferred directly to beneficiaries’ bank accounts through Direct Benefit Transfer (DBT) within a maximum of 60 days.

Only Delhi residents purchasing government-approved EV models will be eligible for incentives. Vehicles not included in the approved list will not qualify for subsidy benefits.

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Proposed subsidy structure

The proposal includes financial incentives across categories. E-bikes could receive subsidies of up to ₹30,000 in the first year, while electric autos may receive up to ₹50,000. Electric four-wheelers may get a maximum subsidy of ₹1 lakh during the first year. The subsidy amounts are proposed to reduce gradually in the following years.

Tax relief, hybrid benefits

The policy also proposes road tax and registration charge exemptions for electric vehicles priced up to ₹30 lakh, while strong hybrid vehicles may receive a 50% concession. Additional incentives ranging from ₹10,000 to ₹1 lakh are also proposed for buyers scrapping old BS-4 vehicles and purchasing EVs.

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How EV incentives work beyond Delhi

The proposed measures come at a time when subsidies continue to remain a key factor influencing EV adoption across India. Government incentives, both at the central and state levels, have helped lower ownership costs through direct purchase benefits, tax reductions and registration-related exemptions.

Under the Centre’s PM E-DRIVE scheme, support for electric mobility and charging infrastructure continues, with demand incentives for selected vehicle categories expected to remain available until March 31, 2026. EVs and charging infrastructure also attract a lower GST rate of 5%, helping reduce overall purchase costs.

However, most buyer-facing benefits vary across states. Several states including Maharashtra, Gujarat, Telangana and Uttar Pradesh offer additional incentives depending on vehicle type, battery capacity and eligibility conditions.

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