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The much awaited Delhi Electric Vehicle Policy 2.0 is here. The Delhi government has proposed a set of mandates in the policy that are not only bold, they have the power to bring about change.
The policy is expected to come into force from April 2025. Once implemented, it will ensure that polluting two and three wheelers will soon become history. The EV policy proposes that internal combustion engine (ICE) three-wheeler registrations will be banned from August 2025 and ICE two-wheelers from August 2026.
The proposed policy will also stop CNG auto-rickshaw permit renewals from August 2025; these permits will be reissued as electric auto permits, the news daily Hindustan Times (HT) reported.
The proposed transformation will be driven by purchase incentives for electric two- and three-wheelers and commercial vehicles like electric trucks, among others. This will be supported by an electric vehicle (EV) fund that will be backed by green taxes, pollution charges and fees from aggregator licenses.
While the strategy for two- and three-wheelers is forceful, a similar note is missing for four-wheelers. Every third car bought by a Delhi resident will have to be electric, the proposal states, with no mention of a phase-out date. The electric bus population is expected to reach 3,000 by the end of 2025, it added.
Charging infrastructure is proposed to be set up — 13,200 charging stations — to ensure easier access to charging points, even though the targets announced in the previous policy are yet to be met. The 2020 policy, which expired in August 2024 and has been extended several times, had set a goal of 45,000 charge points, of which only 10 per cent are in place. The current proposal promises subsidies for private and semi-public charging stations, and development of fast-charging corridors to get this done.
The policy will also push for 100 per cent electrification of utility vehicles used by the Municipal Corporation of Delhi and the Delhi Jal Board, among others, by 2027.
The overall ambition set by the new EV policy proposal is 95 per cent EV penetration in total vehicle registrations by 2027 and 98 per cent by 2030. A reality check reveals that its earlier version fell short of its 25 per cent target by 2024, achieving 13-14 per cent by the said timeline.
Clearly, to meet the current targets, government strategies will have to be aggressive and will need policy accelerators that include incentives as well as implementation of penalties for non-compliance.
At a time when automakers are increasing prices to address high input costs, EV policy compliance in Delhi will require innovation in several areas ranging from product design and planning to business models as well as creative strategies to win a competitive advantage in the market.
The four key goals of the policy are to combat air pollution and improve public health, apart from creating jobs in the EV ecosystem, improving energy security and enable an affordable EV transition.
A policy push is key for Delhi to go electric in larger numbers especially since the benefits from CNG do not suffice anymore. The new electric vehicles policy proposal is easily the most progressive state-level plan for the transition, Amit Bhatt, Managing Director of ICCT told HT. However, it will require a strong implementation push for increased benefits in the two and three wheeler sectors, he added.
