Delhi’s Electric Vehicle Policy 2026 has the potential to serve as a blueprint for other states, but its success will depend on making electric vehicles more affordable through accessible financing, Ayush Lohia, Chief Executive Officer of Youdha Auto, has said.
Lohia said the policy reflects the Delhi government’s commitment to building a sustainable and future-ready mobility ecosystem by providing a clear roadmap for electric vehicle (EV) adoption, ANI reported.
“Delhi has demonstrated strong intent through this policy. A clear roadmap for EV adoption gives confidence to manufacturers, suppliers, financiers and consumers alike. If implemented effectively, the policy has the potential to become a blueprint for other states and accelerate India’s transition towards clean mobility,” he said.
He said while purchase incentives and regulatory measures are important, affordable financing remains the biggest challenge to large-scale EV adoption, particularly for first-time buyers and commercial vehicle operators.
According to Lohia, the policy lays a strong foundation through incentives, infrastructure development and a phased transition plan, but easier access to loans and competitive financing will be critical for achieving its objectives.
“Purchase incentives certainly reduce the upfront cost, but financing continues to be the biggest missing piece. Many customers still face higher interest rates or limited financing options for electric vehicles compared to conventional vehicles,” he said.
He added that banks, non-banking financial companies (NBFCs) and other financial institutions need to expand EV lending and offer more competitive financing products to accelerate adoption.
Lohia also advocated innovative ownership models such as Battery-as-a-Service (BaaS), battery leasing and flexible repayment options to reduce acquisition costs, especially in the two- and three-wheeler segments.
“The next phase of India’s EV growth will not be driven by technology alone but by affordability. Flexible financing, battery leasing and lower cost of ownership can make electric mobility accessible to millions of customers,” he said.
The Delhi Electric Vehicle Policy 2026, notified on July 1, will remain in force until March 31, 2030.
Under the policy, eligible buyers of electric two-wheelers can receive purchase incentives of up to ₹30,000 in the first year, reducing to ₹20,000 in the second year and ₹10,000 in the third year. Electric three-wheelers are eligible for incentives of up to ₹50,000 in the first year, while electric light commercial vehicles in the N1 category can receive incentives of up to ₹1 lakh, depending on vehicle weight.
The policy also provides a 100% waiver of road tax and registration fees for electric cars priced up to ₹30 lakh (ex-showroom), although these vehicles are not eligible for a direct purchase subsidy.
As part of the transition roadmap, the Delhi government has announced that registration of new petrol-powered three-wheelers will cease from January 2027, while new registrations of petrol-powered two-wheelers will be discontinued from April 2028. Existing vehicles in these categories will continue to be permitted on the roads, ANI stated.
