Delhi EV Policy 2.0: Aiming for 95% EVs by 2027, Electric Car Mandate & More

Delhi, the capital city of India, is poised to revolutionize its transportation sector with the proposed Electric Vehicle (EV) Policy 2.0, announced in early March 2025.

This policy aims to accelerate the transition to electric mobility, targeting 95% of new vehicle registrations to be electric by 2027, up from the previous 25% target by 2024 under the original policy.

The policy’s ambitious goals include mandating the third private car in households to be electric, alongside stringent bans on fossil fuel vehicles and extensive infrastructure development.

This note provides a comprehensive overview of the policy, its key components, and potential impacts, based on recent reports from reputable sources.

Policy Background and Objectives

The original Delhi EV Policy, introduced in 2020, was lauded as one of India’s most progressive, aiming for 25% EV adoption by 2024.

However, with only 13-14% achieved by that deadline, the government has proposed EV Policy 2.0 to address the shortfall and combat severe air pollution, which is significantly contributed by vehicular emissions, especially from two- and three-wheelers.

The new policy, expected to take effect in April 2025, outlines a roadmap to strengthen Delhi’s position as a leader in EV adoption in India, with objectives including improving air quality, creating livelihood opportunities in the EV ecosystem, enhancing energy security, and ensuring an equitable transition.

Key Targets and Mandates

The policy sets forth several ambitious targets and mandates, detailed as follows:

Third Private Car Must Be Electric:

A notable provision is the mandate that the third private car purchased in any household must be an electric vehicle.

This rule, reported by Hindustan Times 3rd private car must be EV: Delhi govt proposal aims to encourage multi-car households to adopt EVs, potentially increasing overall EV penetration.

New Vehicle Registration Bans:

• • Fossil Fuel Three-Wheelers: Starting from August 2025, no fossil fuel-powered three-wheelers, including CNG autorickshaws and three-wheeler goods carriers, will be registered.

Additionally, no CNG auto permits will be renewed from this date, with only e-auto permits issued, as per reports from Swarajya Mag (Delhi’s EV Policy 2.0: Third Private Car To Be Electric; No Fossil Fuel Three-Wheeler Registrations From August, Two-Wheelers From 2026).

• • Non-Electric Two-Wheelers: From August 2026, no petrol, diesel, or CNG-run two-wheelers will be registered, a move to significantly reduce polluting two-wheelers, as noted in the same source.

Phasing Out CNG Vehicles:

The policy focuses on systematically phasing out CNG-powered auto-rickshaws, taxis, and light commercial vehicles (LCVs), replacing them with electric alternatives.

This is highlighted in articles from The Times of India (Delhi’s EV policy 2.0 to phase out CNG autos, target 95% EVs by 2027: Details) and Delhi Government Unveils Proposed EV Policy, Targets 95% EV Adoption By 2027.

• Full Transition to Electric Buses: The government has committed to a full transition to electric buses, with plans to increase the e-bus fleet to around 3,000 by the end of 2025, enhancing the sustainability of public transport, as reported Delhi EV Policy 2.0 targets 95 per cent EV adoption by 2027.
• EV Registration Targets: The policy aims for 95% of new vehicles registered in Delhi to be electric by 2027, with an ambitious stretch goal of 98% by 2030, a significant jump from the previous policy’s achievements, as detailed in the Hindustan Times article.
• Government Vehicle Procurement: All government vehicle procurement, including those of the Municipal Corporation of Delhi (MCD) and Delhi Jal Board (DJB), must be electric, with a phased transition to achieve a 100% electric fleet by 2027 for garbage collection vehicles, as per the Hindustan Times report.

EV Incentives and Support Mechanisms

To facilitate this transition, the policy includes several incentives and support mechanisms:

• Purchase Incentives: The policy proposes purchase incentives for electric two-wheelers, three-wheelers, e-LCVs, and e-trucks, making EV ownership more affordable. This is mentioned in multiple online media sources.
• Scrapping and Retrofitting Incentives: Incentives are provided for scrapping old vehicles and retrofitting them with electric powertrains, encouraging a shift from internal combustion engine (ICE) vehicles. This is noted in the Hindustan Times article, which also mentions retrofitting CNG autorickshaws over 10 years old during the policy period.

Charging Infrastructure Expansion

A critical component of EV Policy 2.0 is the expansion of charging infrastructure to support the anticipated surge in EV usage:

• Public Charging Stations: Over 13,200 charging stations are planned to be set up across the city, ensuring a station every five kilometers, a significant increase from the previous policy’s target of 48,000 by 2026, of which only 10% was achieved, as per the Hindustan Times report.
• Mandatory Charging Points: New buildings and public spaces will be required to include EV charging points, ensuring widespread availability, as reported by Other Media Sites.
• Fast-Charging Corridors: Fast-charging corridors will be developed along major roads such as the Ring Road and Outer Ring Road, providing convenient access for EV users, as noted in Delhi EV Policy 2.0: Paving The Way For Electric Mobility By 2027.
• Capital Subsidies: Capital subsidies will be provided for the setup of private and semi-public charging stations, encouraging further development, Delhi EV Policy 2.0: Ambitious Plans To Transition To 95% Electric Vehicles By 2027.

Financing and Implementation

To fund these initiatives, a dedicated State EV Fund will be established, financed through green levies, pollution cess, and aggregator license fees.

This fund will play a critical role in providing the necessary incentives and ensuring the transition is efficient and sustainable, as reported by DriveSpark News.

Impact and Challenges

The implementation of Delhi EV Policy 2.0 is expected to significantly improve air quality by reducing vehicular emissions, particularly from two- and three-wheelers, which contribute 42% of PM 2.5 pollution, as noted in the Switch Delhi policy update (Switch Delhi – Policy update). It also aims to create livelihood opportunities in the EV ecosystem, enhance energy security, and ensure grid resilience.

However, challenges include:

• Infrastructure Development: The need for substantial investment in charging infrastructure, with the previous policy achieving only 10% of its charging point target, raises questions about meeting the new goals.
• Grid Capacity: Ensuring the power grid can handle increased demand from EV charging, especially with the planned expansion.
• Public Acceptance: Managing the transition for vehicle owners and operators, particularly in the auto-rickshaw and two-wheeler segments, who may face financial burdens from bans and retrofitting requirements.
• Affordability and Availability: Ensuring electric vehicles are affordable and available, especially for lower-income groups, to ensure an equitable transition.

Experts, as mentioned in the Hindustan Times, note that the ban on ICE two-wheeler registrations beyond August 15, 2026, could set a precedent, though the absence of a similar plan for ICE cars might limit its scope.

Comparison with Previous Policy

The original Delhi EV Policy, introduced in 2020, aiming for 25% EV adoption by 2024, with provisions for fiscal and non-fiscal incentives like road-tax waivers and green registration plates, as seen in Switch Delhi’s mission statement (Switch Delhi – The mission).

EV Policy 2.0 significantly escalates this, with a 95% target by 2027 and introduces more stringent measures like the third private car rule and vehicle bans, not present in the earlier policy.

It also places a stronger emphasis on phasing out CNG vehicles and expanding charging infrastructure, reflecting lessons learned from the previous policy’s underachievement.

Conclusion

Delhi EV Policy 2.0 represents a bold and comprehensive approach to transforming the city’s transportation sector towards sustainability. By setting ambitious targets, providing necessary incentives, and planning extensive infrastructure, the policy aims to make Delhi a global leader in EV adoption.

As of March 16, 2025, the policy is in the proposal stage, with final clearance pending cabinet approval, and its success will depend on effective implementation and addressing the outlined challenges.

This policy not only promises environmental benefits but also economic growth through the EV ecosystem, potentially setting a benchmark for other cities in India and beyond.