As new policy nears implementation, Delhi gets ready for its next EV phase

As new policy nears implementation, Delhi gets ready for its next EV phase

by with No Comment car updates

  • Delhi is set to bring out a new EV policy in the next financial year, which will focus on subsidies, charging expansion and incentives for scrapping old petrol and diesel vehicles.

The upcoming policy focuses on fiscal incentives, rapid expansion of charging infrastructure and encouraging removal of older, high-emission vehicles from the roads.

Chief Minister Rekha Gupta on Saturday said the Delhi government is preparing to introduce a new electric vehicle (EV) policy, the implementation of which is expected from the next financial year.

The Chief Minister said the policy framework has been completed and is designed to address rising pollution levels while strengthening the capital's transport system. He pointed out that vehicular emissions account for a significant portion of PM2.5 and PM10 pollution in Delhi, and the shift to electric mobility could help reduce this impact.

Incentives, infrastructure and exit plan for old vehicles

The upcoming policy focuses on fiscal incentives, rapid expansion of charging infrastructure and encouraging removal of older, high-emission vehicles from the roads. Gupta said the subsidy will be used to reduce the cost gap between internal combustion engine vehicles and EVs. He also said that Delhi has already removed road tax and registration charges on EV purchases.

As part of the policy, the government plans to introduce additional incentives for vehicle scrappage. Owners who scrap old petrol or diesel vehicles will be eligible for financial benefits when purchasing electric vehicles, with an aim to accelerate the phasing out of polluting vehicles.

Also read: Delhi pollution curbs explained: Which vehicles are allowed to enter the city)

How the government plans to implement the changes

Gupta said automakers have been asked to align production and supply with demand and maintain reasonable pricing. The government is also consulting power distribution companies, vehicle manufacturers and authorized scrap dealers. Once finalized, the draft policy will be released for public consultation to gather feedback from residents.

On charging infrastructure, the Chief Minister said the plan includes installing public chargers not only at prime locations but also close to residential areas. Provisions for battery exchange and proper disposal of used batteries are also part of the framework. He said that consumers will be given enough time to transition to electric vehicles.

Check out Upcoming EV Cars in India, Upcoming EV Bikes in India.

First publication date: 21 Dec 2025, 12:49 PM IST

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Auto industry, Tata Motors, M&M, Maruti shares panicked by the news of Tesla's arrival

Auto industry, Tata Motors, M&M, Maruti shares panicked by the news of Tesla's arrival

by with No Comment Car Review

Last updated:

New Ev Policy: Due to the new EV policy, the shares of Tata Motors, Mahindra & Mahindra and Hyundai Motor India declined by 6%. Preparations for Tesla's entry into India feared to increase competition for domestic companies …Read more

Highlights

  • Tata Motors, M&M, Hyundai shares fall by 6%
  • New EV policy feared to increase competition for domestic companies
  • Stock market stirred by Tesla's preparation for admission to India

New ev policy: On 21 February, Tata Motors, Mahindra & Mahindra (M&M), and Hyundai Motor India shares saw a decline of up to 6%. This decline has taken place by the government amid discussion of relaxation in electric vehicles (EV) import rules. This step can make it easier for foreign companies to enter the Indian market, due to which there is a possibility of increasing competition for domestic automakers. Preparations for entry of global companies like Tesla into India have given this discussion further warm.

Mahindra & Mahindra shares saw the biggest decline in about 7 months, which reached ₹ 2,653. Tata Motors shares fell 2% to ₹ 676 and Hyundai Motor India shares fell 2.5% to ₹ 1,875. This decline is believed to be because Tesla has started fast efforts to sell his cars in India.

According to Moneycontrol report, Alan Musk's Tesla Inc. can enter the Indian market through direct imports, not through local production. To facilitate Tesla's entry into India, the government is considering a decrease in EV import duty. Apart from this, extensive exemption can also be given in EV import rules.

Change in import duty
The government has reduced basic custom duty (BCD) to 70 percent on fully prepared electric vehicles priced more than $ 40,000. However, an additional 40 percent of the Agriculture Infrastructure and Development Cess (AIDC) has been imposed. 10 percent of Social Welfare Surcharge (SWS) is exempted, resulting in an effective import duty for electric vehicles above this price point to 110 percent. The import duty for electric vehicles priced below $ 40,000 remains at 70 percent.

Reacts in the stock market
After this news, the Nifty Auto Index saw a decline of 2.5%, which reached 21,534 points. The decline in shares of major companies like Tata Motors, M&M, Hyundai Motor India, Maruti Suzuki and Bajaj Auto affected the index. The Nifty Auto Index has seen a decline of about 6% from the beginning of this year.

Possible changes in electric vehicle policy have shaken the Indian automobile sector. The entry of global companies like Tesla will increase competition in the Indian market, but it will also be a big challenge for domestic companies. This policy of the government is an important step towards making India a major player in the global EV market.

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New Delhi,New Delhi,Delhi

First Published:

February 21, 2025, 12:12 IST

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Auto industry, Tata Motors, M&M shares panic due to the news of Tesla's arrival

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