According to the Electric Vehicle Policy 2.0, a number of incentives will be provided in the first year. Private electric cars priced below Rs 1.5 million are eligible for a subsidy of up to Rs 100000, but the discount is limited to the first 100000 applicants. The electric two-wheeler will receive a fixed incentive of Rs 10000, which is different from the previous calculation based on battery capacity. In addition, an electric tricycle in the L5M category is eligible for a subsidy of Rs 25000.

The policy also includes a tax incentive that provides for the exemption of all road taxes and registration fees as of March 31, 2030 for electric vehicles with a showroom price of Rs 3 million or less. However, to close the so-called "luxury loophole", electric cars priced at more than 3 million rupees will be taxed at the regular rate.

In terms of public transport, the Delhi government plans to add 6130 new electric buses in 2026, aiming to reach a total of 12000 by 2029. All vehicle dealers in Delhi are required to have at least one public charging pile in their stores. The government plans to build 18000 charging points by the end of 2026.

In addition, a new battery recycling framework has been introduced to deal with the expected surge in lithium-ion battery waste. Under this initiative, the Delhi Pollution Control Board will become the lead agency responsible for the "echelon utilization" of batteries (I. e., "secondary life" use).

Although Delhi has one of the highest electric vehicle penetration rates in India, it still faces challenges in implementing the new policy. There was a backlog of around Rs 1.4 billion crore worth of subsidy applications under the previous policy due to delays in the review. To solve this problem, the Delhi Budget 2026 proposes to link all new disbursements to "direct benefit transfer" (DBT) and an electronic authentication system based on "Ayur" (Aadhaar, India's national biometric identification system), reducing the approval time from 40 days to less than one week.