New Delhi Approves Ban on New Petrol 2- and 3-Wheeler Registrations by 2028, Backed by EV Incentives

In a landmark move to combat its chronic air quality crisis, the government of New Delhi has officially approved one of the most aggressive vehicle electrification mandates in the developing world. On June 29, 2026, the Delhi Cabinet, led by Chief Minister Rekha Gupta, cleared the comprehensive Electric Vehicle (EV) Policy 2.0. The sweeping framework, which takes effect on July 1, sets hard, legally binding deadlines to systematically eliminate traditional internal combustion engine (ICE) models from the capital's urban transport landscape.[1][2][4]

The most consequential mandate targets the backbone of Indian commuter transport: the two-wheeler. Starting April 1, 2028, the city will completely halt the registration of new petrol-powered motorcycles and scooters. From that date forward, every new two-wheeler sold and registered within the National Capital Territory must be fully electric.[1][2][4]

The transition timeline for commercial and passenger three-wheelers is even tighter. By January 1, 2027, the registration of new petrol and CNG-powered auto-rickshaws will be permanently banned. This accelerated 18-month window forces a rapid pivot for the city's vast network of last-mile transit operators, ensuring that the iconic green-and-yellow autos will soon be entirely battery-powered.[3][4]

Crucially, officials have clarified that the upcoming deadlines govern new vehicle registrations only, rather than acting as a retroactive ban on existing property. Citizens who currently own petrol bikes and scooters will not be forced to surrender them in 2028. These existing vehicles can continue to be driven legally for their full operational lifecycles, provided they comply with Delhi's prevailing End-of-Life Vehicle regulations, which cap petrol vehicle usage at 15 years.[1][5]

The focus on two-wheelers is a matter of sheer volume and environmental impact. Motorcycles and scooters account for roughly 67 percent of Delhi's total vehicle population. Because they are driven daily for commuting and commercial deliveries, they represent a disproportionate share of the vehicular emissions that contribute to the city's notorious winter smog.[5]

To ensure the mandate does not economically cripple lower- and middle-income residents, the policy is backed by a massive financial carrot. The Delhi government has committed an unprecedented ₹15,000 crore (roughly $1.8 billion USD) over the next four years to fund direct consumer subsidies and infrastructure development. This capital injection is designed to bridge the upfront price gap between electric models and their cheaper petrol counterparts.[2][4]

The incentive structure heavily rewards early adopters. In the first year of the policy, buyers of electric two-wheelers will receive a direct purchase subsidy of ₹30,000 (approximately $360). To encourage immediate action, this benefit tapers down to ₹20,000 in the second year and ₹10,000 in the third year.[1][2]

Commercial operators receive even larger financial support. Purchasers of electric three-wheelers will be eligible for a ₹50,000 incentive in the first year. Meanwhile, buyers of N1 category electric light commercial trucks can receive up to ₹1 lakh (roughly $1,200). Furthermore, electric cars priced under ₹30 lakh will enjoy a 100 percent waiver on road tax and registration fees.[1][3][4]

These purchase subsidies can be stacked with aggressive scrappage bonuses aimed at removing the most polluting vehicles from the road. Owners who choose to scrap older, BS-IV compliant vehicles will receive an additional ₹10,000 for two-wheelers, ₹25,000 for three-wheelers, and up to ₹1 lakh for four-wheelers. When combined, these incentives create a compelling total-cost-of-ownership advantage for EVs.[2][6]

The policy also fundamentally rewrites the rules for the city's booming gig economy. Commercial aggregators—including ride-hailing giants like Uber and Ola, as well as delivery platforms like Zomato and Swiggy—are already subject to a mandate that prevents them from adding any new petrol or diesel vehicles to their fleets as of 2026. The 2028 blanket ban on two-wheelers ensures that independent delivery riders will also be fully integrated into the electric ecosystem.[5][7]

During the drafting phase, the policy became a battleground for legacy automakers, who heavily lobbied the government to extend tax exemptions to strong hybrid vehicles. However, the final approved framework explicitly rejected these proposals. Transport officials confirmed that the policy is strictly focused on promoting pure, zero-emission electric vehicles, leaving hybrid cars subject to standard taxation.[2]

Recognizing that a mandate is only as effective as the infrastructure supporting it, the government has earmarked significant funds to eliminate range anxiety. The policy sets a binding target to establish 32,000 new public charging points across Delhi by 2030. This rollout will be co-funded by the central government's PM E-DRIVE scheme and state budget allocations.[2]

Heavy freight, a major driver of nighttime pollution, is also addressed through strategic operational perks. The first 1,000 heavy-duty N-2 electric trucks (weighing between 3.5 and 12 tonnes) purchased within three months of the policy's notification will be granted a 10-year exemption from Delhi's restrictive 'No Entry' timings. This allows electric freight operators to bypass the daytime bans that currently paralyze diesel logistics.[3]

Ultimately, Delhi's EV Policy 2.0 serves as a high-stakes laboratory for urban electrification in the developing world. By pairing hard legislative bans with heavy, front-loaded financial incentives, the city is attempting to force a market tipping point. If a megacity of over 30 million people can successfully navigate this transition, it will provide a replicable blueprint for other heavily polluted capitals globally.[4][7]