The Delhi government has unveiled the 'Draft EV Policy 2026-30', outlining a comprehensive roadmap to transition the capital's transport system toward electric mobility. The proposed policy aims to phase out internal combustion engine (ICE) vehicles to combat rising pollution levels. According to the draft, the government intends to stop the registration of new petrol-powered vehicles in specific categories within the next few years. This strategic shift is expected to create a ripple effect across the automobile industry and its ancillary sectors, influencing market dynamics for several listed entities.
The Proposed Timeline for Petrol Vehicle Phase-Out
According to the draft policy documents, the Delhi government proposes to halt the registration of new petrol-powered three-wheelers starting January 2027. This will be followed by a complete ban on the registration of new petrol-powered two-wheelers from April 2028. The government has invited public feedback and suggestions on this draft before finalizing the regulations. The primary objective is to ensure that all new additions to the city's fleet in these categories are zero-emission vehicles, aligning with the broader national goal of carbon neutrality.
Performance of Major Automobile Manufacturers
The proposed policy is expected to favor established automobile manufacturers that have already made significant strides in the electric vehicle segment. Bajaj Auto, a leader in the three-wheeler market, has been aggressively expanding its EV portfolio. 29% increase. 64% to close at ₹3,825. According to market data, these companies have seen a steady increase in their EV sales volumes over the past few quarters.
Expansion of Pure Electric Vehicle Players
Pure-play EV manufacturers like Ola Electric and Ather Energy stand to gain a larger market share if the ban on petrol vehicles is implemented. Ola Electric has witnessed significant volatility and growth in its stock price recently, while 88. Ather Energy also recorded a growth of over 11% in the past week. As per government records, Delhi has one of the highest EV penetration rates in India, providing a fertile ground for these startups to scale their operations as petrol alternatives are phased out.
Growth in Battery and Charging Infrastructure
The transition to electric mobility is heavily dependent on the availability of battery technology and charging infrastructure. Companies like Exide Industries and Amara Raja Energy are pivotal to this ecosystem. 74% to ₹326 during the last trading session. 22%. According to industry reports, the demand for lithium-ion batteries and fast-charging stations is projected to grow exponentially if the Delhi policy is ratified.
Recent Market Trends and Stock Performance
Market analysts are closely monitoring the impact of the Delhi government's proposal on the upcoming trading sessions. Most stocks related to the EV ecosystem showed positive momentum during the previous week, while sona BLW and other auto component manufacturers are also expected to be influenced by this policy shift. The final implementation details, including potential subsidies and incentives for consumers, will be crucial in determining the long-term trajectory of these stocks. Currently, the focus remains on the production capacities and technological advancements of these companies.