ASIATODAY.ID, NEW DELHI – Facing one of the world’s worst urban air pollution crises, India’s capital has unveiled an ambitious $1.59 billion electric vehicle (EV) incentive program, offering cash rewards of up to $1,060 for residents who scrap older cars and replace them with electric vehicles.
The initiative forms part of Delhi’s broader strategy to dramatically cut vehicle emissions and achieve at least 30% vehicle electrification by March 2030, as the city continues to struggle with hazardous air quality.
According to the latest World Air Quality Report, Delhi remained the world’s most polluted capital for the eighth consecutive year in 2025, underscoring the urgency of reducing emissions from its rapidly growing vehicle fleet of approximately 8.76 million registered vehicles.
Under the new policy, owners who retire cars purchased before April 1, 2020, and replace them with electric vehicles will receive a scrappage incentive worth around $1,060.
To further encourage adoption, electric cars priced below approximately $31,700 will be exempt from road tax and registration fees—costs that typically add 4% to 10% to the purchase price.
The policy places particular emphasis on motorcycles and scooters, which account for nearly 5.9 million vehicles in Delhi.
Beginning April 1, 2028, the city will register only electric two-wheelers. Buyers will also receive subsidies starting at about $300 during the first year, with gradually reduced incentives over the following two years.
Authorities are also accelerating the electrification of public transport. From January 1, only electric autorickshaws will be eligible for new registrations, while hybrid vehicles will not qualify for the new incentive scheme.
A major obstacle remains charging infrastructure. Delhi currently operates roughly 3,100 EV charging stations and 893 battery-swapping facilities, far below projected demand. To address this gap, the government plans to install 32,000 additional EV charging points across the city.
Delhi Chief Minister Rekha Gupta said the policy represents a significant milestone toward making the capital largely pollution-free by 2030.
Delhi experiences unhealthy air quality throughout the year, with conditions worsening sharply during winter as emissions from vehicles combine with construction dust and smoke from agricultural burning in neighboring states.
Recent government-based analyses estimate that the average resident inhales pollution equivalent to smoking around nine cigarettes per day.
The policy is also expected to benefit India’s leading EV manufacturers, including Tata Motors, Mahindra & Mahindra, TVS Motor, Bajaj Auto, and Ather Energy, as demand for electric mobility accelerates across the country’s largest urban market. (RT)
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