Delhi EV Policy Can Become a Model for Other States, Says ASSOCHAM

Industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM) has welcomed the Delhi government's Electric Vehicle (EV) Policy 2026, describing it as a potential model for other states and a major step towards accelerating electric mobility. The industry body said the policy could make EVs more affordable, encourage the replacement of older polluting vehicles, and contribute to cleaner air in the national capital and beyond.

ASSOCHAM Sees Wider Benefits Beyond Delhi

Speaking to ANI, ASSOCHAM Secretary General Saurabh Sanyal said the policy's impact would extend beyond Delhi and could encourage other states to adopt similar measures.

"ASSOCHAM applauds the EV policy which has been announced by the Delhi government... This will not only benefit the citizens of Delhi and NCR, but it will also give a start to all the other states of India," Sanyal told ANI.

He noted that the policy comes as Delhi continues to face severe air pollution challenges, particularly during the winter season.

"We all know that there is a big environmental problem in Delhi... with this policy... the biggest benefit is that electric vehicles will become very popular in Delhi and NCR," he said.

The Delhi government approved the Delhi EV Policy 2026 on Monday, with the policy coming into effect from July 1 and remaining valid until March 31, 2030. The government estimates direct investments of more than Rs 7,000 crore over the next four years, while the overall benefits to citizens through incentives, tax exemptions, and EV infrastructure are expected to exceed Rs 15,000 crore.

Scrappage Incentives And Tax Benefits Aim To Boost Adoption

Highlighting a key component of the policy, Sanyal said owners replacing older petrol and diesel vehicles would receive financial support through scrappage incentives.

"Those who have petrol cars or diesel cars... they will get value on residual value, their cost will be partially reimbursed and they will be able to buy new electric vehicles," he said.

He also argued that the incentives would help make EVs more accessible to ordinary consumers.

"The price of electric vehicles... will become affordable for a common man... this is an example which the Delhi government is presenting... and because of this, the country is going to get largely and hugely benefited," Sanyal said.

The policy places strong emphasis on replacing older, high-emission vehicles with electric alternatives. Owners scrapping BS-IV or older two-wheelers and purchasing EVs will receive an additional Rs 10,000 incentive. Three-wheeler owners will be eligible for Rs 25,000, N1 commercial truck owners up to Rs 50,000, and owners of BS-IV or older four-wheelers shifting to electric cars can receive a scrappage incentive of Rs 1 lakh. These benefits will be available in addition to purchase incentives under the policy.

The policy also grants a 100 per cent exemption from road tax and registration fees for all pure electric vehicles. For electric cars, the exemption will apply to vehicles priced up to Rs 30 lakh ex-showroom.

Industry Calls For Strong Supporting Infrastructure

Meanwhile, Ayush Lohia, CEO of electric three-wheeler manufacturer YOUDHA, welcomed the policy but stressed that successful implementation would require significant ecosystem support.

"A balanced and phased approach to transitioning from petrol-powered two-wheelers to electric mobility will be key to achieving Delhi's clean mobility ambitions," Lohia said.

Referring to the proposed phase-out of new petrol-powered two-wheelers after 2028, he added: "a significant step", "its success will depend on the readiness of the overall ecosystem. Expanding charging infrastructure, improving access to affordable EV financing, strengthening supply chains, and increasing consumer awareness will be essential to ensure a smooth and inclusive transition for both manufacturers and consumers."

Lohia said Delhi has the opportunity to lead India's electric mobility transformation if the policy is implemented effectively.

"If implemented effectively, Delhi can set a strong benchmark for electric mobility adoption across India," he added.

(With inputs from ANI)