Delhi Announces $1,000 Incentive to Scrap Old Cars and Switch to EVs

The Delhi government has unveiled a new electric vehicle (EV) policy aimed at tackling the capital’s severe air pollution by encouraging residents to replace older vehicles with electric ones. Under the policy, owners who scrap cars purchased before April 1, 2020 and switch to a battery-powered EV will receive a cash incentive of more than $1,000. The programme, backed by an investment of ₹150 billion over four years, is set to come into effect from July 1.

The policy also offers exemptions from road tax and registration fees for battery electric cars priced up to ₹3 million. Buyers of electric scooters and motorcycles will receive incentives of up to ₹30,000 during the first year, while the government plans to install 32,000 EV charging stations across the city. From April 2028, only electric two-wheelers will be eligible for registration in Delhi, accelerating the transition away from petrol-powered vehicles.

Officials say the measures are designed to reduce vehicle emissions, one of the major contributors to Delhi’s hazardous air quality, especially during winter. The policy excludes hybrid vehicles and is expected to provide a significant boost to India’s electric vehicle industry, benefiting manufacturers of electric cars and two-wheelers as demand for cleaner transportation continues to grow.