Delhi Electric Vehicle Policy 2020: What’s in it for you [Update]

The Delhi Electric Vehicle Policy, 2020 that was announced on 23 December 2019 has been approved and been notified with immediate effect. With incentives of up to INR 1,50,000, the new policy aims to establish Delhi as the nation’s EV capital and drive rapid adoption of pure electric vehicles.

Delhi government will use software which ICICI Bank has developed to disburse the subsidy under the Delhi Electric Vehicle Policy, 2020. The EV dealers will get access to this software and need to fill the relevant details about their customers’ purchase. After that, once the concerned motor licensing officers verify the purchase, the customer will get the subsidy amount directly in his/her bank account. This process will take no more than 48 hours.

Electric bike & scooter incentives in Delhi

Two-thirds of Delhi’s new vehicle sales are of two-wheelers, and the most popular segments are 110-125 cc motorcycles (models like Hero Splendor and Honda CB Shine) and 90-125 cc scooters (models like Honda Activa, TVS Jupiter & Suzuki Access). To speed up the shift to electric two-wheelers, up to INR 30,000 incentive will be available on electric two-wheelers with Advanced Batteries (as per FAME India Phase II). Below are the requirements for the electric two-wheelers that have to be met to be eligible for the incentive:

CriteriaThreshold Value
Minimum Top Speed40 km/h
Minimum Acceleration0.65 m/s2
Maximum Energy ConsumptionLess than or equal to 7 kWh/100 km
WarrantyAt least 3 years, including battery warranty, from manufacturer

Electric auto rickshaw incentives in Delhi

Electric L5M category vehicles (electric passenger three-wheelers including electric auto rickshaws) with advanced batteries (as per FAME India Phase II) and meeting the eligibility criteria for FAME India Phase II incentives will be eligible for the incentives under the Delhi Electric Vehicle Policy. There’s an INR 30,000 purchase incentive and also a 5% interest subvention on loans/or hire purchase scheme for electric auto rickshaws in Delhi now, thanks to the new regional policy.

Electric cart incentives in Delhi

The same incentives of electric auto rickshaw will be offered for electric carts. However, in the case of e-carts, the purchase incentive shall be applicable even if they have lead acid batteries and swappable batteries and if the battery is not sold with the vehicle. To get the loan and/or hire purchase incentive, though, the e-carts will have to have an advanced battery (as per FAME India Phase II).

Electric Car incentives in Delhi

For electric cars with advanced batteries (as per FAME India Phase II) in Delhi, there’s a purchase incentive of INR 10,000 per kWh of battery capacity. The maximum incentive is INR 1,50,000 per vehicle. What’s really interesting about the policy is that, unlike the FAME India scheme, it doesn’t set a bar on the retail price of the electric car. So, even MG ZS EV and Hyundai Kona EV customers will be able to claim it. The downside is that it will be available to only the first 1,000 electric cars sold after this announcement.

The goal of the Delhi Electric Vehicle Policy is to increase the share of Battery Electric Vehicles (BEVs) to 25% by 2024. The auto industry is heaping praise on the Delhi government which wants 1 out of 5 new light vehicles sold to be a zero-emission model. The incentives offered under this regional policy would be in addition to the incentives available in the national scheme FAME India, which is currently in Phase-II.