Eicher Motors shares tumbled 6.5% on Monday after the Delhi government unveiled its EV Policy 2.0, a move that draws a hard line under the capital's petrol and CNG two-wheeler trade and leaves Royal Enfield badly exposed.
The policy states that registration of all new petrol and CNG two-wheelers in Delhi will end permanently from April 1, 2028. From that date, every new commuter two-wheeler sold in the city must be electric. There is no grace period and no hybrid carve-out.
For Royal Enfield, the timing could hardly be worse. The brand carries just one electric model in its line-up and has no meaningful presence in Delhi's EV segment. That is despite Royal Enfield's otherwise commanding position in the capital, where it holds a 3.3% share of the overall two-wheeler market, according to data from the Society of Indian Automobile Manufacturers. A strong franchise built on mid-size petrol motorcycles offers little protection once the switch to electric becomes mandatory.
Eicher share price has fallen sharply in Tuesday morning trade
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Rivals with established EV portfolios stand to gain ground instead. TVS Motor is best placed, commanding a 17% share of Delhi's electric two-wheeler market already. Bajaj Auto and Hero MotoCorp follow with 12% each, giving both a sizeable head start as demand shifts. Pure electric players are also in the mix: Ather Energy holds 9% and Ola Electric 4%, positions that could expand sharply once the petrol ban takes hold.
Analysts said the policy effectively forces legacy manufacturers without credible EV ranges to either accelerate product launches or cede Delhi's commuter segment entirely. With under two years to the deadline, the pressure on Royal Enfield to widen its electric offering, or risk losing its foothold in one of India's largest two-wheeler markets, has just gone up considerably.
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