India Launches EV Incentives to Replace Older Vehicles and Accelerate Clean Mobility

The Delhi Government has introduced a new initiative under its EV Policy 2026 to encourage residents to replace older, polluting vehicles with electric alternatives. The policy offers cash incentives to individuals who scrap eligible end-of-life vehicles and purchase new electric vehicles, reinforcing the city's commitment to cleaner transportation and improved air quality.

As part of the initiative, the government has approved a significant investment of around ₹15,000 crore over the next four years to strengthen Delhi's electric mobility ecosystem. The funding will support financial incentives for EV buyers, expand charging infrastructure across the city, and promote wider adoption of zero-emission vehicles.

The policy is designed to reduce harmful emissions generated by ageing petrol and diesel vehicles, which remain a major contributor to air pollution in the national capital. By encouraging the transition to electric mobility, the government aims to improve urban air quality, lower greenhouse gas emissions, and create a cleaner and healthier environment for residents.

Alongside purchase incentives, the policy focuses on building a robust EV ecosystem by increasing the availability of charging stations and supporting the infrastructure needed for long-term electric vehicle adoption. These measures are expected to make EV ownership more convenient while strengthening Delhi's position as one of India's leading cities for sustainable transportation.

The initiative aligns with India's broader climate and clean energy goals by promoting low-carbon mobility solutions and reducing dependence on fossil fuels in the transport sector. It also supports the country's efforts to accelerate the adoption of electric vehicles, advance sustainable urban development, and move towards a more environmentally responsible transportation system.

With financial support for consumers, infrastructure expansion, and a clear focus on reducing emissions, the Delhi Government's latest EV policy represents another important step towards building a cleaner, greener, and more sustainable future for the capital.

Scrappage-linked EV incentives address one of the persistent barriers to EV adoption, and they change fleet economics for delivery, logistics and personal mobility operators. Our energy-transition and market-intelligence teams help clients evaluate what these incentives mean for EV adoption and Scope 3 disclosure.