Delhi Extends Its EV Policy for a Third Time as Government Works on Ambitious EV Policy 2.0

On April 15, 2025, the Delhi Cabinet approved a three-month extension of the city's existing Electric Vehicle (EV) policy. This extension keeps the current rules and benefits in place while the government puts the finishing touches on a brand new, more ambitious policy called EV Policy 2.0.

This is not the first time the extension button has been pressed. Delhi's original EV policy expired on January 1, 2025, and since then the government has extended it three times in just four months. That tells you the new policy is still a work in progress, not yet ready to replace the old one.

The Cabinet meeting was chaired by Chief Minister Rekha Gupta, the head of the Delhi state government. Two other senior ministers also made important clarifications at the meeting. Transport Minister Pankaj Singh said there is no plan to ban auto-rickshaws or any other category of vehicles under the new policy — countering rumours that had worried drivers across the city. Home Minister Ashish Sood put to rest speculation that the government's electricity subsidy for EV owners would be scrapped.

To understand why this matters, it helps to know where Delhi started. Back in 2020, the city launched its first proper EV policy, which set a goal of making 25% of all new vehicle registrations electric by 2024. That target was not fully met, but the policy was not a failure either. By late 2024, nearly 20% of all new vehicles being registered in Delhi were EVs — a significant jump. More than 3 lakh (300,000) EVs are now registered in the city, and Delhi has built 4,793 charging points. The campaign Switch Delhi, which encouraged residents to swap petrol vehicles for electric ones, was a part of this push.

EV Policy 2.0 is far more aggressive. Its headline target is that 95% of all new vehicles sold in Delhi should be electric by 2027. The draft policy also proposes banning the sale of new petrol and CNG-powered two-wheelers after August 15, 2026, and stopping fresh registrations of petrol, diesel, and CNG three-wheelers from August 15, 2025. The new policy would also phase out 90% of CNG public buses by the end of the year, replacing them with electric buses.

To help people make the switch, EV Policy 2.0 proposes generous subsidies. The first 10,000 women who buy an electric two-wheeler would receive up to ₹36,000. For all buyers, there is an incentive of up to ₹30,000 on electric two-wheelers, calculated at ₹10,000 per kWh. An extra ₹10,000 is on offer for anyone who scraps a petrol two-wheeler older than 12 years before buying an electric one.

One of the biggest practical concerns with EVs is finding a place to charge them. The 2020 policy had an ambitious target of 48,000 charging stations by 2026, but only about 10% of that — roughly 4,793 — was actually built. EV Policy 2.0 sets a more focused target of 13,200 charging stations spread so that no Delhiite is more than five kilometres from a charging point. That is a significant rethink of strategy: fewer stations but better distributed.

The Delhi Cabinet has not yet approved EV Policy 2.0. Ministers reviewed the draft but proposed further changes, meaning discussions are still ongoing. Officials have also acknowledged a hard reality: with over one lakh (100,000) auto-rickshaws and vast numbers of two-wheelers on Delhi's roads, an overnight or rapid forced shift is simply not feasible. The final EV Policy 2.0 is expected to be officially unveiled within the next three to four months.