New Delhi: In a bold move to tackle air pollution and fast-track the transition to electric mobility, the Delhi government is preparing to roll out the second phase of its Electric Vehicle (EV) policy with major incentives for women and commercial vehicle owners. The proposed EV Policy 2.0, currently awaiting Cabinet approval, lays out a clear roadmap to phase out fossil fuel vehicles and push for battery-powered alternatives across the city.
One of the standout features of the draft policy is a targeted subsidy for women purchasing electric two-wheelers. According to officials, the first 10,000 women holding valid driving licences will be eligible for a subsidy of up to Rs 36,000, calculated at Rs 12,000 per kilowatt-hour (kWh) of battery capacity. This initiative is designed to encourage more women to shift to electric mobility and reduce their reliance on polluting vehicles.
Incentives aren’t limited to women alone. All electric two-wheeler buyers may benefit from a general subsidy of Rs 10,000 per kWh, capped at Rs 30,000. Those scrapping petrol two-wheelers, not older than 12 years, will be eligible for an additional Rs 10,000 incentive, providing a combined benefit of up to Rs 40,000 for eligible buyers.
For electric auto-rickshaws in the L5M category, those intended to replace aging CNG autos, the government has proposed a subsidy of Rs 10,000 per kWh, with a maximum cap of Rs 45,000 per vehicle. Further, those scrapping internal combustion engine (ICE) autos under 12 years old can receive an additional Rs 20,000. In a firm push towards electrification, the policy mandates that CNG autos completing 10 years during the policy window must be replaced with electric models. To facilitate this, a one-time replacement incentive of Rs 1,00,000 is likely to be offered.
However, those availing the Rs 1 lakh benefit won’t be allowed to claim any other subsidy under the scheme, in an effort to balance fiscal responsibility with aggressive EV promotion.
The policy draft also targets commercial electric goods carriers. Electric three-wheelers (L5N) could get up to Rs 45,000, while four-wheeler carriers in the N1 category could receive subsidies as high as Rs 75,000. These incentives are set to be available for both individuals and businesses for the first three years of the policy, with price caps of Rs 4.5 lakh and Rs 12.5 lakh on eligible vehicle categories, respectively.
The government also plans to stop the registration and permit renewals of CNG auto-rickshaws from August 15, 2025. All such permits will be transitioned to e-auto permits, in line with the state’s plan to completely eliminate fossil fuel-based autos during the policy period. Solid waste vehicles and buses powered by petrol or diesel will also be phased out gradually. Additionally, starting August 15, 2026, no petrol, diesel, or CNG two-wheelers will be allowed for registration in Delhi. The same ban will apply
to fossil fuel-based goods carriers (three-wheelers) beginning August 15, 2025.