New Delhi offers subsidies for electric car purchases to curb pollution

In a significant move to combat severe air pollution, the government of New Delhi has approved a new policy offering financial incentives for citizens to switch to electric vehicles. The initiative aims to accelerate the transition to cleaner transportation and improve air quality in one of the world's most polluted cities.

The policy, officially the Delhi Electric Vehicle Policy 2026, will provide subsidies ranging from approximately $360 for two-wheelers to $1,000 for light electric goods vehicles. A key component involves offering up to $1,000 to individuals who buy electric cars and agree to remove their old, polluting vehicles from circulation. This scrappage incentive is designed to directly reduce the number of high-emission vehicles on the road.

Beyond the subsidies, the policy introduces a 100% exemption on road tax and registration fees for all electric cars priced below $36,000. These measures are intended to make electric vehicles more affordable and attractive to consumers. The overarching goal is to achieve zero-emission mobility in Delhi by 2030, a critical target given the city's persistent air quality crisis.

New Delhi frequently grapples with hazardous levels of air pollution, particularly during winter months. The city implements emergency measures like the Graded Response Action Plan (GRAP), which can include vehicle restrictions, construction bans, and school closures, when pollution levels become critical. Data indicates that in 2026, not a single day in Delhi met the World Health Organization's safe air quality limits.

The government is also enforcing strict bans on gasoline cars older than 15 years and diesel vehicles older than 10 years. Furthermore, fuel stations are prohibited from supplying gasoline to vehicles lacking a valid emissions certificate. These combined efforts underscore the city's urgent commitment to tackling its environmental challenges.