Delhi's Air Pollution Drives New EV Incentives in India

The Delhi government approved a new electric vehicle policy offering over US$1,000 to owners who scrap older cars for battery-electric models. The initiative responds to severe air pollution that regularly affects India’s capital city, particularly during winter months when pollutants become trapped. Delhi’s plan allocates ₹15,000 crore (about US$1.75 billion) over four years to accelerate electrification, including banning new gasoline-powered two-wheelers starting in 2028 and building over 30,000 public charging points.

This policy aligns with India’s national clean-air framework, which tracks air quality in over 130 cities and identifies vehicle emissions as a major contributor to pollution. The national government’s PM E-DRIVE scheme also supports EV adoption through purchase incentives and infrastructure development.

Experts see the plan as potentially transformative, but emphasize the need for affordable EVs and a rapid expansion of charging infrastructure to ensure widespread adoption and improve public health.