Delhi EV policy 2026: From subsidies and scrapping incentives to tax exemptions, all you need to know

The auto sector is experiencing a significant shift towards EVs, driven by government policies and rising environmental awareness. Delhi's aggressive policy will accelerate this transition, particularly in the high-volume 2W and 3W segments.

Look for long opportunities in Indian auto OEMs with strong EV product pipelines and battery manufacturers, focusing on companies that can capitalize on the increased demand from Delhi and other states.

For Indian markets, this story mainly matters for M&M, BAJAJ-AUTO, TVSMOTOR and the Automobile, Auto Ancillaries pocket. The current signal is bullish, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: Active in the EV space for both passenger and commercial vehicles, will see increased demand from Delhi's policy. Manufacturer of electric two-wheelers and three-wheelers, directly benefits from subsidies and mandates for these segments. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Delhi is implementing new incentives for EV adoption, including purchase subsidies.
• •The policy includes scrapping benefits for two-wheelers, three-wheelers, and cars.
• •Road tax exemptions are part of the new EV policy.
• •The policy mandates electrification, aiming for a cleaner transport future.
• •New registrations of only electric three-wheelers will be allowed from 2027 in Delhi (as per online context).