The Government of the National Capital Territory of Delhi has released its Delhi Electric Vehicle Policy 2.0, a comprehensive framework that extends purchase incentives, expands charging infrastructure mandates, and—for the first time in any Indian state-level EV policy—establishes specific provisions for battery recycling and end-of-life management. The policy, approved by the Delhi Cabinet in December 2025, sets a target of 50% electric vehicle share in new two-wheeler and three-wheeler registrations by 2030.
Delhi’s original EV Policy, launched in August 2020, was credited with catalyzing a sharp increase in electric vehicle adoption across the capital. Under that policy, EV registrations in Delhi grew from fewer than 6,000 in 2020 to over 125,000 in 2025, making it one of India’s top three states for electric vehicle penetration. The new policy builds on that momentum while addressing gaps that emerged during the first phase—particularly around charging access and battery waste management.
Purchase Incentives and Charging Infrastructure
EV Policy 2.0 continues demand-side subsidies but restructures them to prioritize commercial and shared-mobility segments. Purchase incentives for electric two-wheelers are capped at &rupee;30,000 ($360), while incentives for electric auto-rickshaws rise to &rupee;50,000. The policy eliminates road tax and registration fees for all battery electric vehicles purchased in Delhi through 2030.
On charging infrastructure, the policy introduces a mandate requiring all new commercial buildings with parking capacity exceeding 50 vehicles to install EV charging stations covering at least 20% of parking spaces. Existing buildings with public parking must retrofit a minimum of 10% of spaces with charging capability by 2028. The Delhi government has also committed to installing 10,000 public charging points across the territory by 2028, up from 2,800 currently operational.
“Delhi’s first EV policy demonstrated that targeted state-level action can move markets. Policy 2.0 takes the next logical step by addressing the full vehicle lifecycle, including what happens to batteries after they leave the road. That is where the real challenge lies for Indian cities.” — Arunabha Ghosh, CEO, Council on Energy, Environment and Water (CEEW)
Battery Recycling Provisions
The most notable addition in Policy 2.0 is a dedicated section on battery end-of-life management. The policy establishes a Delhi Battery Recycling Framework that requires EV manufacturers and authorized dealers to accept returned batteries at no cost to consumers. It mandates that all batteries collected in Delhi be processed at facilities certified under India’s Battery Waste Management Rules, 2022, which were updated by the Ministry of Environment, Forest and Climate Change to cover lithium-ion chemistries.
Delhi’s framework goes further than the national rules by setting a state-level collection target of 70% of end-of-life EV batteries by 2030 and designating the Delhi Pollution Control Committee (DPCC) as the enforcement authority. The policy also creates a pilot program for second-life battery deployment in government buildings and Delhi Metro stations, where retired EV batteries would be repurposed for backup power and peak-load management.
- Mandatory take-back: OEMs must operate or contract collection points within 10 kilometers of every Delhi district
- Recycling certification: Only facilities meeting Bureau of Indian Standards (BIS) specifications for lithium-ion battery recycling may process Delhi-origin batteries
- Second-life pilot: The government will deploy retired EV batteries at 25 government sites by 2028, with performance data shared publicly
- Consumer awareness: All new EVs sold in Delhi must display battery recycling information at the point of sale
The Broader Indian Context
Delhi’s policy arrives at a critical moment for India’s EV transition. National EV sales crossed 1.9 million units in 2025, dominated by electric two-wheelers and three-wheelers, with the country on track to become the world’s third-largest EV market by volume within the next two years. Yet India’s battery recycling capacity remains concentrated among a small number of players, including Attero, Lohum Cleantech, and ACE Green Recycling, with combined processing capacity estimated at less than 30,000 tonnes per year.
Several Indian states—including Maharashtra, Karnataka, and Tamil Nadu—have published EV policies but have not included recycling-specific provisions at the level of detail present in Delhi’s new framework. Industry groups such as the Society of Indian Automobile Manufacturers (SIAM) have called for a harmonized national approach, arguing that state-by-state variation in recycling standards could fragment the market and increase compliance costs for manufacturers.
Whether Delhi’s approach becomes a template for other Indian states or an outlier will depend largely on enforcement. India’s track record on environmental regulation implementation is mixed, and the success of the battery recycling provisions will hinge on whether the DPCC receives adequate staffing and funding to monitor compliance. For now, the policy places Delhi at the leading edge of India’s effort to ensure that its electric mobility transformation does not create a new waste crisis in the process.
