Government of Delhi Considering Limit on Number of Fossil Fuel Vehicles per Family for Lowering Air Pollution

The national capital, Delhi, has set an ambitious target to increase the number of electric vehicles (EVs) to 30% of all vehicles by 2030. This ambitious goal is part of the city's updated electric vehicle policy, which was extended recently.

The policy, still in the proposed stages, includes several significant changes. For instance, starting from 1 April 2027, no new petrol, diesel, or gas-powered two-wheelers can be sold. This ban, if implemented, could have a significant impact on manufacturers like Bajaj, TVS, and Hero MotoCorp, which heavily rely on internal combustion engine (ICE) vehicles for their sales.

The policy also proposes limiting the number of ICE vehicles owned by wealthy households in Delhi. Currently, these households are allowed to own an unlimited number of ICE cars. However, the new policy limits them to owning just two ICE-powered cars.

Two-wheelers, including motorcycles and scooters, are not explicitly banned under the current policy. However, authorities are considering a potential ban on ICE motorcycles and scooters, with the potential year being 2027. This could affect lower and middle-income groups who rely on these vehicles for transportation.

To encourage the adoption of EVs, the Delhi government is offering cash incentives of up to ₹29,000 for people who buy electric bikes and scooters. Additionally, the government has proposed the removal of certain local taxes when buying hybrid vehicles.

The policy also includes a new tax of 0.50 paise per litre of petrol, as per a 74-page draft. This tax is intended to discourage the use of ICE vehicles and promote the shift towards EVs.

The first electric vehicle policy in Delhi was introduced in 2020, aiming to increase electric vehicles to 12% of all new vehicle sales by 2024. The updated policy has an even more aggressive target, with the city already having achieved 12% EV penetration in new vehicle sales, thanks to the initial policy.

Delhi, with its population of over 8 million vehicles in 2022-23, has a long way to go to meet its 2030 target. Two-wheelers make up 67% of these vehicles, indicating a significant potential for electrification in this segment.

The Delhi government's electric vehicle policy is expected to cost ₹286 billion. The policy is currently under consideration, with suggestions from car manufacturers and other interested parties yet to be taken into account.

Government of Delhi Considering Limit on Number of Fossil Fuel Vehicles per Family for Lowering Air Pollution