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The Delhi government has received 5,678 applications for incentives under the Delhi Electric Vehicle Policy 2026 since its implementation on July 1, 2026. According to government officials, 1,664 applications have been processed so far, with the government disbursing a total of Rs 4.8 crore under various incentive categories. As many as 4,014 applications are currently under process, highlighting the growing interest among consumers in the incentives offered under the policy.
Electric two-wheelers account for the majority of applications received and processed under the policy. Of the 1,664 applications processed so far, 1,648 beneficiaries belonged to the electric two-wheeler category, with around Rs 4.6 crore disbursed as incentives. Overall, 5,621 of the 5,678 applications received are for electric two-wheelers, indicating strong demand for incentives in one of the fastest-growing EV segments in Delhi.
Under the Delhi EV Policy 2026, buyers of electric two-wheelers are eligible for incentives of up to Rs 30,000 in the first year, Rs 20,000 in the second year and Rs 10,000 in the third year. The policy aims to make EV ownership more affordable while encouraging consumers to shift towards cleaner mobility. To facilitate the process, Delhi Chief Minister Rekha Gupta launched the online portal for the policy on July 3, allowing consumers to apply for incentives available on the purchase of electric vehicles.
The policy also goes beyond purchase incentives by encouraging consumers to scrap older internal combustion engine vehicles and replace them with new electric vehicles. Eligible owners can receive a scrapping incentive of Rs 1 lakh for BS-IV or older cars and Rs 10,000 for eligible BS-IV or older two-wheelers. So far, 41 new EV buyers have received scrapping incentives, linking vehicle replacement with the broader objective of accelerating the transition towards electric mobility.
Ajinkya Firodia, Vice Chairman & Managing Director, Kinetic Engineering Ltd, said the policy is a positive step towards making the transition to electric mobility easier and more meaningful for consumers. “Delhi EV Policy 2026 is a very welcome step. At the end of the day, the transition to electric mobility has to be easy and meaningful for the consumer, and incentives around scrappage and EV purchases can certainly help people take that first step. We hope more states consider similar initiatives because EV adoption cannot be limited to a few cities or markets. It is a larger shift that we need to encourage across the country, and consistent policy support can make a real difference in building that momentum.
“For Kinetic, this is especially encouraging as we have been back in the electric two-wheeler market for just about a year and are steadily building our presence and reconnecting with consumers. We have seen that when the product, value and customer proposition come together, people are open to making the switch. Supportive policies can give that journey an additional push, and we believe a collective effort from policymakers, manufacturers and consumers will be key to making electric mobility a part of everyday life in India.”
The policy is also expected to have an impact beyond EV sales, particularly on battery recycling and the wider circular economy. Manikumar Uppala, Co-Founder and Chief of Industrial Engineering at Metastable Materials, said the combination of scrappage incentives and EV purchase incentives could help create a more organised pipeline of batteries and other materials for recycling. “The EV policy encourages EV purchases outright but it also goes beyond. It is an important step towards building an organised pipeline for batteries. The policy’s scrappage incentive for old ICE vehicles combined with incentives for purchasing EV will accelerate electric mobility transition which has wider connotations for the battery and allied industry such as recycling. For recyclers like us, it creates a greater visibility for future feedstock and strengthens the case for investment in recycling capacity. The proposed battery collection centres is also a big step that will strengthen the battery end of life management ecosystem better. Of course, the success will depend on implementation, but it is a highly positive policy signal for the electric vehicles industry and overall batteries’ circular economy.”
As EV adoption increases, the policy will also place greater demands on Delhi’s electricity and charging infrastructure. Kumar M, Founder & CEO, Smart Grid Analytics, said the focus now needs to extend towards building an integrated EV energy ecosystem. “Delhi EV Policy 2026 is poised to accelerate electric mobility by making adoption more affordable with purchase incentives and scrappage benefits. But for those of us in the energy and mobility sectors, the real challenge and opportunity lie in how we evolve the underlying power infrastructure. With EV adoption rising, especially among commercial fleets and high-usage operators, charging demand will become a major new load for the city’s power system. This calls for smarter solutions: utilities and charging operators will need to invest in advanced demand forecasting, dynamic load management, and time-of-use tariffs to ensure the grid can handle the surge, while keeping costs predictable for businesses.
“Integrating EV charging with renewable energy and distributed storage isn’t just a sustainability goal; it’s fast becoming a business imperative. Aligning charging with periods when clean, affordable power is available can optimise both environmental and economic outcomes. Digital energy management platforms will be key, enabling fleet operators and utilities to monitor demand, automate charging schedules, and ease grid stress during peak times. Delhi now stands at a turning point. By building an integrated EV energy ecosystem, where vehicles, charging, and the grid work in harmony, the city can set a new standard for reliable, scalable, and cost-effective electrification. For the industry, this is both a challenge and an invitation to innovate.”
At the same time, the growth of EVs and the eventual rise in end-of-life batteries and electronic components will require stronger waste-management systems. Nitin Gupta, Co-Founder & CEO, Attero, said the updated policy should be viewed not only as a mobility transition programme but also as an opportunity to build a structured battery and e-waste management ecosystem. “Delhi updated EV policy is not just a mobility transition plan; it is also the beginning of a future battery and e-waste management challenge that must be addressed from day one. As EV adoption accelerates and older vehicles are phased out, the city will witness a steady rise in end-of-life lithium-ion batteries, chargers, power electronics and other electronic components over the coming years. The environmental cost of mismanaging this waste is significant, as these materials contain hazardous substances that can contaminate soil and water, while also carrying valuable critical minerals such as lithium, cobalt, nickel and graphite that India currently imports in large quantities.
“Delhi emphasis on creating greater accountability and formalising waste streams can play an important role in ensuring that more end-of-life electronics and batteries are channelled into authorised recycling networks rather than informal processing systems. This is particularly important because e-waste is one of the fastest-growing waste streams globally, and India is already among the world’s largest generators of e-waste. Yet a significant portion of this material still remains outside the formal recycling ecosystem, resulting in environmental risks as well as the loss of valuable resources that could be recovered and reused.
“Managing e-waste effectively requires more than collection targets. It requires an integrated ecosystem comprising consumer awareness, efficient collection mechanisms, traceability, producer responsibility and advanced recycling infrastructure. The technology to do this already exists. Attero proprietary India-developed recycling technologies, backed by 50+ global patents, are capable of recovering over 98% of critical materials from end-of-life lithium-ion batteries at battery-grade purity levels. This demonstrates that discarded electronics and batteries are not merely a waste burden but an urban mine containing strategic raw materials that can support India’s clean energy, electronics manufacturing and resource security ambitions. The success of Delhi policy will ultimately be measured not only by the number of EVs adopted, but also by how effectively the city builds a circular economy around the materials powering this transition.”
With purchase incentives, scrappage benefits, battery collection measures and a growing focus on charging infrastructure, the Delhi EV Policy 2026 takes a broader approach to electric mobility. While the initial response has been particularly strong in the electric two-wheeler segment, the long-term impact of the policy will depend on effective implementation and the ability of policymakers, automakers, charging companies, energy firms and recyclers to build an integrated EV ecosystem.
Conclusion
Overall, the Delhi EV Policy 2026 takes a broader approach to accelerating electric mobility by combining EV purchase incentives with scrappage benefits and measures aimed at strengthening the battery and e-waste ecosystem. While the strong response from electric two-wheeler buyers shows growing consumer interest, the policy’s long-term success will depend on effective implementation, adequate charging and power infrastructure, and a well-organised recycling ecosystem. If these areas develop alongside EV adoption, Delhi could strengthen its position as a key market for India’s transition towards cleaner and more sustainable mobility.
