EV policy: Petrol two-wheelers to be barred from registration in Delhi from 2028

The Indian auto sector is undergoing a significant transformation towards EVs, driven by government policies and environmental concerns. This Delhi policy provides a strong impetus for EV adoption, particularly in the two and three-wheeler segments.

Focus on auto OEMs with established EV product lines and battery manufacturers; look for companies with strong order books and expansion plans in the EV space.

For Indian markets, this story mainly matters for HEROMOTOCO, M&M and the Automobiles, Auto Ancillaries, Electric Vehicles 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: Largest two-wheeler manufacturer, investing in EV segment, will see increased demand for its electric models. Significant player in the three-wheeler segment with EV models, will benefit from the electrification mandate. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Delhi to ban new petrol two-wheeler registrations from April 2028.
• •Electric models will be mandatory for new two-wheeler registrations from FY29.
• •Three-wheelers will transition to electric-only from January 2027.
• •School buses and commercial fleets face phased electrification targets.
• •Measures aim to boost clean mobility and reduce pollution in the capital.