The Delhi Government’s draft electric vehicle policy for 2024–2030 is anticipated to significantly increase EV sales once put into action, although it may lead to a temporary delay in purchases, as per a report. With a government outlay of around Rs 40,000 crore, the draft policy aims to expedite EV adoption through upfront incentives, strict mandates, and scrappage-linked benefits, stated the report from Axis Direct.
The policy sets a target of achieving 100% electric registration for three-wheelers by January 2027 and two-wheelers by April 2028. Due to the current uncertainty, the report suggests that EV purchases might be postponed until there is more clarity on the policy.
Once the policy is enforced, a notable surge in EV sales is predicted over the following months, driven by pent-up demand and enhanced incentive visibility, according to the report. The draft policy favors manufacturers who make early investments, possess scalable platforms, and exhibit strong product traction.
Leaders with established portfolios are gaining market share in the two-wheeler segment, while underpenetrated incumbents are ramping up their EV investments. In the passenger vehicle sector, early movers are expected to maintain an edge, with others likely to expand through upcoming releases, the report highlighted.
The three-wheeler market remains highly consolidated, supported by regulatory mandates that reinforce the position of dominant players. Considering these factors, the brokerage remains discerning, favoring OEMs with robust pricing power and well-established EV product portfolios.
The policy’s strategic incentive structure is designed to promote early adoption, offering electric two-wheelers Rs 10,000 per kWh of incentives in the first year (capped at Rs 30,000). These incentives decrease to Rs 6,600 in the second year and Rs 3,300 in the third year. Direct subsidies for passenger vehicles have been withdrawn, with the focus shifting towards scrappage incentives and tax benefits to enhance fiscal efficiency.
Hybrid vehicles receive a 50% road tax exemption (below Rs 30 lakh), acknowledging their transitional role in the policy.
