The Electric Vehicles (EVs) Policy 2020 implemented by the Delhi government has been highly successful, with 86% of the set targets already achieved.
Over the past three years, there has been a significant increase in the sales of EVs. In 2020, the sales of EV two-wheelers stood at 1,165, which rose to 34,596 in 2022. Similarly, EV three-wheelers witnessed a jump from 10,328 in 2020 to 21,623 in 2022. In the EV four-wheeler segment, sales increased from 886 to 5,641 during the same period. Although EV adoption has been high in Delhi, the sales have been particularly prominent in the two and three-wheeler segments, while private four-wheelers have shown the lowest uptake, as reported by the EV cell.
The existing EV policy is set to expire in August of this year. The government’s objective under this policy was to ensure that 25% of all new vehicles registered in the city are electric by 2025, and by the same year, the conversion of 100% of the delivery and government vehicle fleet to EVs. Officials have stated that the existing policy achieved a disbursement rate of 89% for incentives and fee waivers for EVs, established 85% of the targeted charging infrastructure, and created 70% of the intended jobs. Additionally, 63% of the battery recycling ecosystem has been developed, and 50% of the dedicated EV fund has been utilised. In December 2022, Delhi achieved a record-breaking ratio with 17% of vehicle sales being EVs, the highest by any state in India.
According to reports, Delhi had an average of 10% EVs among total vehicle sales last year, reaching a peak of 17% in December 2022, the highest in India. The city currently boasts more than 4,300 charging points and 256 battery swapping stations across 2,500 locations. The disbursement of subsidies totaling ₹167 crore thus far reflects the successful implementation of the policy.
One of the key factors contributing to Delhi’s success is the presence of a dedicated EV cell, a non-lapsable state EV fund, a public charging infrastructure database, incentives for EV purchases, incentives for scrapping fuel-based vehicles, and new permits for e-autos. The government also introduced electric buses and auto rickshaws after 2020.
Experts present during a consultation on the new policy highlighted the need to focus on skill development, electrification of commercial fleets, and incentive restructuring. They suggested that while incentive schemes have effectively accelerated EV adoption, they may not be sustainable in the long term. Gradually tapering off purchase incentives in the new policy iteration could prevent a rebound effect caused by the abrupt removal of subsidies. Additionally, providing more affordable financing options for EVs and offering usage incentives such as parking fee exemptions and toll fee waivers to EV users could further encourage adoption.