Delhi offers $1,000 scrappage incentive to trade old cars for EVs

Delhi has announced a major incentive scheme offering more than $1,000 to car owners who scrap older vehicles and switch to electric models, as part of a broader push to reduce severe air pollution in the Indian capital. The policy, introduced by the government of India’s national capital territory, is aimed at accelerating the transition to electric mobility and reducing emissions from one of the world’s most polluted cities. Under the plan, owners who trade in vehicles purchased before 1 April 2020 and replace them with electric vehicles will receive a scrappage incentive of more than $1,060 (£840). In addition to the scrappage benefit, buyers of electric vehicles priced up to Rs3 million (£25,400) will be exempt from road tax and registration fees, which typically range between 4% and 10% of the vehicle’s price. The policy also provides direct purchase incentives for electric two-wheelers. Buyers of electric scooters and motorbikes will receive Rs30,000 (£254) in the first year, which will gradually reduce to Rs10,000 (£85) by the third year. The government has also removed hybrid vehicles from the incentive structure, focusing exclusively on full battery electric vehicles. Alongside consumer incentives, the policy includes a major expansion of charging infrastructure and aims to significantly increase EV adoption across the city. Authorities hope that at least 30% of Delhi’s vehicle fleet will be electric by 2030. From 2027, only electric small trucks and three-wheelers will receive new registrations, followed by electric-only registration for scooters and motorbikes from 2028, effectively phasing out new petrol versions of these categories. Transport officials say the move is necessary as vehicle emissions account for a significant share of Delhi’s air pollution, which regularly reaches hazardous levels, especially during winter months when thick smog blankets the city. Environmental experts have welcomed the shift but warn that electrification alone will not solve the crisis, pointing to other major pollution sources including construction dust, industrial emissions, waste burning and crop burning in surrounding regions. They also stress the need for stronger public transport systems and wider access to charging infrastructure, particularly in lower-income neighbourhoods, to ensure an equitable transition. (Newswire)