The Delhi government has notified EV Policy 2.0, valid through March 31, 2030, with a total scheme outlay of Rs 15,000 crore, of which the state is directly committing Rs 7,000 crore over four years.
The sharpest provisions are the registration bans. From January 1, 2027, only electric autorickshaws will be eligible for new registrations. From April 1, 2028, petrol and CNG two-wheelers go the same way.
Electric cars with an ex-showroom price of up to Rs 30 lakh get road tax and registration fee waivers; there is no direct purchase subsidy for four-wheelers. Two-wheelers and three-wheelers get purchase incentives of up to Rs 30,000 and Rs 50,000 respectively in the first year, tapering over three years.
The government will also forgo over Rs 3,000 crore in road tax and registration revenues over the policy period.
On infrastructure, Delhi Transco Limited becomes the nodal agency for public charging and battery swapping. Every OEM dealer must deploy at least one public charging station — three points for two and three-wheelers, two for four-wheelers. All new civil infrastructure projects must be EV-charging-ready, as per the official gazette.
Winners And Losers
In the three-wheeler segment, Bajaj Auto is the clearest beneficiary, with M&M also gaining from the January 2027 cutoff. In two-wheelers, TVS Motor leads with a 17% EV market share in Delhi; Bajaj Auto and Hero MotoCorp each hold 12%, with Ather at 9% and Ola at 4%.
Eicher Motors, via Royal Enfield, is the most exposed loser — it has no EV presence and derives 3.3% of its total sales from Delhi. Morgan Stanley flagged that Eicher "needs a successful EV now," adding that while the EPS impact across the sector may be limited, the policy could weigh on multiples — particularly if other cities adopt Delhi's framework as a template.
In the four-wheeler segment, Tata Motors and M&M stand to benefit from the road tax waiver. Maruti Suzuki is disadvantaged by the exclusion of hybrids from incentives; Hyundai is hampered by low EV market share in the capital.
Execution Questions
Citi points to underdeveloped charging infrastructure and the absence of e-motorcycle models capable of replacing existing ICE products. It also notes the policy's porous enforcement problem — Delhi's borders with Haryana and Uttar Pradesh make it straightforward for buyers to register vehicles outside the NCR.
Kotak adds that while scooter electrification is progressing, motorcycle electrification remains nascent, putting motorcycle-heavy OEMs like Hero MotoCorp and Royal Enfield at a structural disadvantage. ICE two-wheelers currently account for 67% of all vehicles sold in Delhi — making the 2028 deadline particularly aggressive.
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