Delhi finalises EV Policy 2026 with phased ICE bans and subsidies up to Rs 1 lakh

Delhi’s target to allow registration of only EV three-wheelers from 2027 seems achievable, but its road to achieve the same for two-wheelers from 2028 is likely to be bumpy

The two-wheeler category presents a bigger challenge for the recently announced Delhi EV policy, which will ban the registration of conventional-engine bikes and scooters from April 2028, with electric penetration in the segment at just 7.3 per cent in Delhi in FY26, according to Crisil Ratings. While the 'April 2028 EV-only registration' requirement provides a clear roadmap for the two-wheeler industry to accelerate investments in electric products, capacity and distribution, internal combustion engine (ICE) models are expected to remain relevant in the near term, Crisil Ratings Director Poonam Upadhyay told PTI. The future growth in Delhi's two-wheeler market will increasingly be linked to EV readiness, she said, responding to a query about the policy's implications for ICE manufacturers, especially in the two-wheeler category. "The impact on ICE manufacturers will vary across segments. In two-wheelers, the transition is expected to be gradual, with EVs accounting for only 7.3 per

With electric bikes accounting for just 7.3% of registrations in FY26, the 2028 mandate will require a significant acceleration in EV adoption.

Delhi EV policy: From 1 April 2028, only new electric two-wheelers will be registered in Delhi.

Delhi's Chief Minister Rekha Gupta has defended the upcoming ban on new petrol two-wheeler registrations from April 2028, citing the need to achieve clean air targets. She emphasized that this mandate is crucial for accelerating the transition to electric vehicles, as two-wheelers contribute significantly to pollution. The government is also bolstering the EV ecosystem with expanded charging infrastructure and incentives, aiming for a comprehensive shift.

Delhi's new EV Policy 2026 aims to accelerate clean mobility by phasing out petrol and CNG two-wheelers by April 2028 and mandating electric three-wheelers from 2027. While offering substantial incentives, a Morgan Stanley report warns that wider adoption by other states could pose a significant challenge for automakers, especially in the two-wheeler segment. The policy includes Rs 70 billion in direct incentives and aims to install over 30,000 charging points.