Delhi’s new EV subsidy scheme, extended until August 2025, offers enhanced financial incentives and simplified registration to boost electric vehicle adoption. Aimed at middle-class buyers, the policy aligns with Delhi’s EV Policy 2.0, targeting 95% electric vehicle registrations by 2027. With expanded charging infrastructure and scrapping incentives, the city is accelerating its transition to sustainable mobility.
Delhi Accelerates Toward Electric Mobility with 2025 Subsidy Scheme
Delhi is steering toward a cleaner, greener future with the extension of its electric vehicle (EV) subsidy scheme until August 2025, designed to make EVs more accessible to middle-class consumers. The updated scheme, part of India’s broader push for sustainable mobility, offers increased financial incentives and streamlined registration processes to encourage the shift from internal combustion engine (ICE) vehicles to electric ones. This initiative builds on the success of Delhi’s EV Policy 2.0, which aims to achieve 95% electric vehicle registrations by 2027.
The subsidy scheme provides purchase incentives for a range of electric vehicles, including two-wheelers, three-wheelers, e-light commercial vehicles (e-LCVs), and e-trucks. For electric trucks, the central government has proposed a subsidy of ₹5,000 per kWh of battery capacity under the PM E-Drive scheme, with ₹500 crore allocated to incentivize buyers. However, detailed guidelines and localization rules for this scheme are still pending, with only nine months left before its expiration.
To complement the subsidies, Delhi is rapidly expanding its EV infrastructure. The government plans to install 18,000 public and semi-public charging points across malls, transit hubs, and commercial zones by 2027. Fast-charging corridors along major roads, such as the Ring Road and Outer Ring Road, are also in development. Capital subsidies for private and semi-public charging stations will further support this expansion, funded through a dedicated State EV Fund supported by green levies, pollution cess, and aggregator license fees.
The policy also includes scrapping and retrofitting incentives to phase out older, polluting vehicles. Starting July 1, 2025, Delhi has enforced strict measures against end-of-life (EOL) vehicles—petrol vehicles over 15 years and diesel vehicles over 10 years—impounding or scrapping them to curb air pollution. This crackdown, supported by Automated Number Plate Recognition (ANPR) cameras linked to the VAHAN database, has already identified 62 lakh such vehicles in Delhi and 44 lakh in the broader NCR.
Delhi’s Air Pollution Mitigation Plan 2025 further reinforces this transition by allowing only BS-VI, CNG, or electric commercial vehicles to enter the city from November 1, 2025. The plan includes deploying 2,299 electric autos at major Delhi Metro stations and mandating that 80% of government fleets run on clean fuel. In ecologically sensitive zones, only EVs will be permitted, with non-essential, non-electric vehicles phased out gradually.
The city’s EV adoption is already showing results, with over one lakh electric vehicles registered, driven by consumer demand and long-term policy incentives. Industry analysts note a significant uptick in consumer sentiment, positioning Delhi as a potential EV hub. The extension of road tax exemptions and subsidies, previously pending, is expected to further boost the market. However, challenges remain, including the need for clearer guidelines and faster infrastructure development to meet the ambitious 2027 target.
The Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, under scrutiny by the transport department, mandates that all service providers switch to electric fleets by 2030. This scheme, which includes safety features like panic buttons and integration with Delhi Police’s 112 emergency response, has listed over 550,000 vehicles, including 325,762 two-wheelers and 111,234 four-wheelers.
As Delhi pushes to become India’s EV capital, the combination of financial incentives, robust infrastructure, and stringent regulations is setting the stage for a transformative shift in urban mobility. The city’s efforts align with national initiatives like the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), launched in June 2025, which encourages domestic EV production with lower import duties for manufacturers.
Disclaimer: This article is based on recent news reports and publicly available information from sources such as Livemint, Hindustan Times, NDTV, and The Times of India. The data reflects real-time updates as of July 3, 2025. Readers are advised to verify details with official government announcements for the latest policy updates.