0. This landmark decision, aimed at curbing pollution and accelerating the adoption of green energy in the national capital, triggered a polarized reaction in the stock market, while while companies dedicated to electric mobility witnessed a surge in investor confidence, traditional manufacturers of petrol and diesel vehicles faced substantial selling pressure. The policy is set to come into effect from July 1, 2026, and will remain operational until March 31, 2030, marking a definitive timeline for the city's transition away from fossil fuels.
Market Reaction: Winners and Losers
The immediate impact of the policy was most visible in the share prices of major automotive players. Ather Energy, a prominent electric scooter manufacturer, saw its shares climb by approximately 4 percent, reaching a new record high of 1131 rupees. This surge reflects a year-to-date growth of nearly 49 percent for Ather in 2026.3 percent in its share price, as investors bet on the company's dominant position in the electric two-wheeler segment. The market clearly favored those already established in the EV ecosystem, anticipating a massive shift in consumer demand within the Delhi-NCR region.
On the flip side, Eicher Motors, the parent company of Royal Enfield, bore the brunt of the policy announcement. 5 percent lower by the afternoon. Bharat Forge also felt the heat, with its stock price dropping by 5 percent initially, later stabilizing at a 1 percent loss. Other major players like Hero MotoCorp, Sona BLW Precision Forgings, and Samvardhana Motherson International also traded under pressure, reflecting concerns about the future of internal combustion engine (ICE) vehicles and the components associated with them.
Key Provisions of Delhi EV Policy 2.0
The new policy outlines a strict roadmap for vehicle registration in the capital, while according to the government's mandate, from January 1, 2027, only electric auto-rickshaws will be permitted for new registration in Delhi. This will be followed by an even more significant shift on April 1, 2028, when the registration of new two-wheelers will be restricted exclusively to electric models. By setting these hard deadlines, the government aims to ensure that the majority of the city's fleet transitions to zero-emission technology within the next few years.
Financial Incentives and Subsidies
To facilitate this transition and reduce the financial burden on consumers, the Delhi government has introduced a tiered subsidy structure. For electric two-wheelers, buyers can avail of a subsidy of up to 30000 rupees in the first year of the policy. This incentive will decrease to 20000 rupees in the second year and 10000 rupees in the third year. For electric auto-rickshaws, the support is even more substantial, with a subsidy of 50000 rupees offered in the first year, 40000 rupees in the second, and 30000 rupees in the third year.
On top of that, the policy includes a significant scrapping incentive to encourage the removal of older, more polluting vehicles from the roads. Owners of BS-IV and older petrol or diesel vehicles can receive up to 1 lakh rupees as an incentive for scrapping their old cars and switching to electric alternatives. Interestingly, the policy doesn't provide any specific incentives for hybrid vehicles, focusing entirely on pure electric mobility. The government plans to invest approximately 15000 crore rupees over the next four years to support this initiative, which includes the rapid expansion of charging stations and other essential EV infrastructure.
Long-term Industry Outlook
0 could serve as a blueprint for other major Indian states. If similar policies are adopted nationwide, the pace of EV adoption in India could accelerate exponentially. While companies like Tata Motors, Mahindra, Ola Electric, and Ather Energy are poised to benefit from this shift, traditional giants like Bajaj Auto and TVS Motor may face challenges unless they rapidly expand their electric portfolios. The policy underscores a clear message: the future of urban mobility in India is electric, and the transition is no longer a distant possibility but an imminent reality.