Delhi EV Policy 2026: The ₹30 Lakh Cut-Off Explained

What the Draft Policy Actually Says

The Delhi government's draft EV policy 2026 is a multi-pronged push to accelerate electric vehicle adoption in the capital through the end of the decade. The centrepiece is a 100% exemption from road tax and registration fees for all battery electric vehicles (BEVs) with an ex-showroom price at or below ₹30 Lakh. The policy validity runs from the date of enactment through to March 31, 2030.

For context, Delhi road tax on petrol cars is levied as a percentage of the ex-showroom price: 4% for vehicles up to ₹6 Lakh, 7% for ₹6–20 Lakh, and 12.5% for vehicles above ₹20 Lakh. On top of this, registration fees run from approximately ₹600 for sub-₹10 Lakh cars to around ₹1,500 for cars in the ₹10–40 Lakh range, plus smart card and hypothecation charges of another ₹500–1,000. The total upfront state-level charge on a petrol car in the ₹15–25 Lakh bracket can easily reach ₹1 Lakh to ₹2.5 Lakh. Waiving all of this for qualifying EVs is a meaningful financial concession.

Beyond road tax, the draft also introduces a ₹30,000 subsidy for EV two-wheelers (tapering at ₹10,000/kWh in Year 1, then declining annually), a ₹50,000 incentive for new e-rickshaws in Year 1 reducing to ₹30,000 by Year 3, and a mandate requiring all new buildings to install EV-charging-ready electrical infrastructure. You can read about the scrappage incentive provisions in detail in our earlier coverage of the Delhi EV Policy 2026–30 draft.

Which EVs Qualify Under the ₹30 Lakh Cap — and Which Don't

The ₹30 Lakh ex-showroom price cap is the single most important filter in this policy. It concentrates benefits on mass-market EVs and excludes premium and luxury electric models entirely. Here is a comprehensive look at where popular EVs currently on sale in India stand relative to the cut-off.

Worked Example: Nexon EV vs Petrol Brezza at ₹18 Lakh

Numbers make this concrete. Consider two buyers in Delhi, both with an ₹18 Lakh budget. One buys a Tata Nexon EV at ₹18 Lakh ex-showroom. The other buys a Maruti Brezza petrol at the same price. How does the upfront cost compare under the draft policy?

This is before factoring in running costs. Delhi's domestic electricity rate averages ₹5–7 per unit. The Nexon EV consumes approximately 15 kWh per 100 km, translating to a running cost of ₹0.75–1.05 per km. A petrol Brezza at similar usage costs roughly ₹7–9 per km at current fuel prices. On a 1,200 km monthly drive, the Nexon EV saves around ₹7,000–9,600 per month in fuel alone — which adds up to ₹84,000–1.15 Lakh per year. Over a 5-year ownership period, the total savings (upfront plus running costs) can cross ₹5–6 Lakh for a Delhi-based buyer.

Strong Hybrids: 50% Road Tax Cut with the Same ₹30 Lakh Cap

The draft policy extends a partial concession to strong hybrid vehicles — cars that pair a conventional engine with a substantial battery and electric motor capable of driving the vehicle on electric power alone for short distances. These include models like the Maruti Grand Vitara Hybrid and the Toyota Hyryder, both of which currently fall in the ₹19–22 Lakh ex-showroom range in Delhi.

Strong hybrids priced at or below ₹30 Lakh are eligible for a 50% reduction in road tax under the draft policy. On an ₹20 Lakh strong hybrid, this translates to a saving of approximately ₹70,000 (half of the standard 7% rate). The same ₹30 Lakh ceiling applies — strong hybrids above this figure get no road tax benefit. Mild hybrids, which use a 48V belt integrated starter generator and do not drive the wheels electrically, do not qualify for any road tax reduction under the draft provisions.

The ₹1 Lakh Scrappage Incentive: Conditions and Limits

Layered on top of the road tax exemption is a scrappage incentive of ₹1 Lakh for buyers who simultaneously scrap a BS-IV or older Delhi-registered car and purchase an EV priced at or below ₹30 Lakh. This is not a new concept — the broader scrappage-linked subsidy mechanism under Delhi EV Policy 2.0 has been in discussion — but the draft policy gives it a firm rupee value and a cap on total beneficiaries.

The ₹1 Lakh incentive is available for the first 1 Lakh (100,000) applicants only. Once the quota is exhausted, new applicants no longer qualify for the scrappage bonus even if they meet all other criteria. At the anticipated pace of EV adoption in Delhi (approximately 8,000–10,000 passenger EVs per month at current rates), 1 Lakh applications could be reached within 10–12 months of the policy going live. Early movers stand to benefit; those who delay risk missing the window.

Who Does Not Benefit from This Policy

The ₹30 Lakh ceiling is a firm cutoff with no tapering. Buyers of premium electric vehicles receive zero road tax exemption under the draft policy, regardless of how far above the cap their vehicle is priced. A buyer of a ₹55.7 Lakh Hyundai Ioniq 5 (2026) in Delhi pays the full 12.5% road tax — ₹6.96 Lakh — just as they would buying an equivalent petrol or diesel vehicle. The same applies to the Kia EV6, BMW iX1, Mercedes EQA, and any other EV priced above the ₹30 Lakh threshold.

Buyers of mild hybrid vehicles — which include most "self-charging hybrid" cars sold in India — also receive nothing under this draft. Mild hybrids with 48V systems are not classified as strong hybrids for policy purposes, so the 50% road tax concession does not apply to them.

First-time car buyers who do not own an old vehicle to scrap also miss out on the ₹1 Lakh scrappage incentive, even if they are buying a qualifying EV. The road tax exemption still applies, but the additional ₹1 Lakh bonus is only accessible if you have an old BS-IV vehicle in your household to scrap. This is a structural limitation that disproportionately affects younger buyers and those buying their first car.

What "Draft" Status Means — Timeline to Enactment

A draft policy in India is a consultative document. It represents the government's intent but carries no legal force until it is notified in the Official Gazette of Delhi. The draft is released for public comment, after which the government incorporates feedback, makes any revisions it deems appropriate, and issues a formal notification. Only at that stage does the policy become operative and enforceable.

The practical implication for car buyers is clear: do not treat draft provisions as guaranteed. The ₹30 Lakh cap could be revised upward to ₹35 Lakh (broadening the benefit) or left unchanged. The ₹1 Lakh scrappage incentive could be increased, reduced, or made subject to additional conditions. The 1 Lakh applicant quota could be expanded or tightened. All of these are live variables until the gazette notification is published.

Based on Delhi's track record with EV policy, the gap between a draft release and formal notification has historically been three to six months. The original Delhi EV Policy was drafted and notified within a similar window. If the 2026 draft follows the same timeline, the policy could be formally enacted and operative by the latter half of 2026. Until then, the road tax exemption does not apply to any purchase made under anticipation of the draft's provisions.

What This Means for Used Car Buyers in Delhi

Delhi's draft EV policy will influence the used car market in ways that buyers and sellers need to plan for, even before the policy is formally enacted.

The scrappage incentive targeting BS-IV and older vehicles will accelerate the exit of cheap, older cars from the market. A BS-IV Maruti Alto or Hyundai i10 priced at ₹2–3 Lakh in today's used market becomes more economically attractive to scrap than to sell privately once the ₹1 Lakh EV incentive enters the equation. Sellers of such vehicles should list on platforms like VahanBazaar Delhi sooner rather than later, before the scrappage route becomes more attractive to their potential buyers.

Used EVs in the sub-₹20 Lakh bracket are likely to see stronger demand as the policy makes new EVs in that range more financially attractive. Buyers who want the EV experience at the lowest possible cost will look at well-maintained used examples of the Tata Nexon EV, MG ZS EV, and Tata Tigor EV. These models should hold their value well in the Delhi market over the coming 12–18 months.

Conversely, if the policy successfully drives significant volumes of new EV purchases in Delhi (which is the government's intent), it will eventually expand the supply of slightly older used EVs in the 2–4 year age bracket from around 2027 onward. This will give used car buyers in Delhi more EV options at lower prices as the years progress — a gradual but significant shift in the city's used car landscape. For a comprehensive look at how EV charging infrastructure is evolving to support this transition, see our EV Charging India 2026 update.