Why Delhi’s New EV Policy Will Ban Fuel-Guzzling Two-Wheelers

Delhi plans to ban sales of fuel-guzzling motorbikes and scooters and limit gasoline and diesel-powered cars a family can buy, according to the draft electric vehicle policy, reported Reuters.

The policy’s second phase will ban the sale of gasoline, diesel and gas-based two-wheelers starting April 1, 2027. It is also providing a cash incentive of up to $350 on the purchase of electric bikes and scooters.

Aimed at tackling pollution in one of the world’s most polluted capital, according to a study by Centre for Science and Environment (CSE), the move could contribute to keep the pollution levels in check which often force local authorities to ban some construction, shut schools and disrupt flights in the city of more than 30 million people during the winter season.

EV Policy Targets Pollution Reduction

The new electric policy further outlines that the city government will waive some local taxes on the purchase of hybrids, putting them on par with concessions given to EVs, while imposing a new levy of Rs 0.5 ($0.0059) on every litre of petrol sales, reported Reuters.

The primary objective, as cited by Reuters, “is to unlock the next phase of EV adoption, reduce air pollution and contribute to India’s energy independence and net zero-targets,” the draft stated.

Since two-wheelers are essential for many residents of Delhi, especially those from lower- and middle- income groups, the policy’s impact could be significant for daily commuters.

The ban on sale of fossil fuel two-wheelers from 2027 will impact manufacturers like Bajaj Motors, TVS and Hero MotoCorp, with some of the negative impact offset by increased sales of their electric two-wheelers.

The Reuters report also stated that the move targets the more affluent population. The policy is also set to limit the number of fossil fuel cars each household can purchase to two, as it aims for a 30% EV penetration by 2030, from around 2.7% last year.

"All private car owners in Delhi will be required to purchase only electric cars if they intend to own (a) third or subsequent car registered to the same residential address," the 74-page draft seen by Reuters stated.