Delhi Cabinet Approves New Electric Vehicle Policy for 2027-28

The Delhi cabinet has approved a comprehensive Electric Vehicle (EV) policy, effective July 1, 2026, aimed at rapid electrification of the city's transport sector. The mandate requires all new auto-rickshaw registrations to be electric by January 1, 2027, followed by a total phase-out of petrol and CNG two-wheeler registrations by April 1, 2028. To support this transition, the government has earmarked ₹15,000 crore for investment over the next four years, offering substantial subsidies of ₹30,000 for two-wheelers and ₹50,000 for three-wheelers in the inaugural year.

The push in the capital aligns with a broader national trend, as India's electric passenger vehicle (EPV) market is projected to exceed 3 lakh units in 2026. Domestic manufacturers lead this shift, with Tata Motors holding a strong market position followed by Mahindra and MG Motor India. Registrations in the first half of 2026 have already approached 1.5 lakh units, indicating that the infrastructure and consumer adoption are reaching a critical tipping point to support this transition toward sustainable mobility.

Alongside the EV transition, the conventional automotive market remains highly competitive, particularly in the mid-size SUV segment. Between March and May 2026, the segment recorded 117,332 unit sales, representing a 32.3% year-on-year growth. The Hyundai Creta emerged as the top performer with 48,364 units, while the Mahindra Scorpio dominated individual monthly sales in May 2026. This dynamic market suggests that while electrification is the government's primary long-term goal for urban centers, consumer demand for SUVs remains a cornerstone of India's immediate automotive industry performance.