Delhi has launched its Electric Vehicle Policy 2.0 with a ₹7,000 crore investment to boost charging infrastructure and mandate the phase-out of fossil-fuel commercial vehicles. The policy sets clear deadlines for three-wheelers by 2027 and two-wheelers by 2028, aiming to create a stable environment for manufacturers and fleet operators.
Detailed Coverage
The Delhi government has officially rolled out its Electric Vehicle Policy 2.0, introducing a structured framework designed to accelerate the adoption of green transport in the capital. A defining feature of this policy is its commitment to calendar certainty, which provides companies with fixed deadlines for fleet transitions. Under the new rules, the registration of traditional fossil-fuel three-wheelers and light goods vehicles will cease by January 1, 2027. This will be followed by a mandate requiring all new two-wheelers to be electric by April 1, 2028.
To support this shift, the government has allocated ₹7,000 crore specifically for the development of charging infrastructure. Delhi Transco has been appointed as the primary agency to oversee this build-out, centralizing responsibility to reduce potential delays in project execution. This shift in regulatory approach is expected to provide manufacturers, lenders, and logistics companies with the predictability needed to allocate capital for new production and fleet expansion.
Strategic Focus on Commercial Mobility
The policy prioritizes commercial transport—including delivery vans, school buses, and auto-rickshaws—over private passenger cars. This strategy targets the most heavily used vehicles, as commercial fleets log significantly higher daily mileage than private vehicles. By focusing public funds on these segments, the government expects to achieve a higher reduction in air pollution per rupee spent. The framework is modeled after successful global transitions, such as in Shenzhen, where the early electrification of public transport fleets paved the way for broader infrastructure development.
Grid Management and Power Costs
Integrating a massive influx of electric buses—with the fleet projected to grow from 4,800 to 14,000 by 2030—presents challenges for the power grid. Charging loads are estimated to rise by 268 MW by the 2026 financial year, creating a risk of overloading the grid during peak hours and necessitating expensive power purchases. To mitigate this, the policy emphasizes smart charging solutions that shift demand to off-peak hours.
By utilizing existing power contracts and incentivizing the use of midday solar energy, the government aims to turn electric bus depots into grid assets. Utilizing stored solar power during evening peak hours could potentially avoid costs of over ₹1,000 crore and lead to efficiency savings of approximately ₹638 crore by 2030. Investors will be closely tracking the implementation timeline of these charging stations and the ability of power distribution companies to manage the added grid load effectively.