Delhi’s electric vehicle transition is shifting gears, with scrappage and vehicle fitness moving to the centre of policy execution, Chief Minister Rekha Gupta said on Friday, signalling a more enforcement-led approach to clean mobility under the capital’s ₹4,000-crore EV push.

Speaking at the Federation of Automobile Dealers Associations’ (FADA) Vyapar Delhi 2026 conclave, Rekha Gupta said the government is targeting pollution “at its source”, with plans to expand automated fitness centres to ensure only emission-compliant vehicles remain on the road. She also called on auto dealers to act as the government’s “working hands” in accelerating EV adoption.

Scrappage-led fleet renewal

The remarks come alongside Delhi’s recently unveiled draft EV Policy 2026–2030, which is backed by an outlay of around ₹4,000 crore over four years and marks a shift from demand incentives to a broader system built on compliance, fleet renewal and lifecycle management.

At the centre of the policy is a structured scrappage framework. Incentives range from ₹10,000 for electric two-wheelers to ₹1 lakh for electric cars, linked to scrapping older vehicles and replacing them with cleaner alternatives. The policy explicitly ties these benefits to the scrapping of Delhi-registered BS-IV and below vehicles and requires that incentives be availed within a defined window alongside new EV purchases.

Fitness and enforcement tighten

This is being reinforced by a parallel push on vehicle fitness and compliance. While the policy’s stated objective is to curb vehicular emissions—identified as a major contributor to Delhi’s air pollution—it works in tandem with the government’s plan to expand automated fitness infrastructure, creating a system where ageing, high-emission vehicles are progressively phased out.

The enforcement push extends to future registrations as well. The policy lays down clear electrification mandates, stating that “only electric three-wheelers (L5) shall be permitted for new registration” from January 2027 and that “only electric two-wheelers shall be permitted” from April 2028. Fleet operators, aggregators and government procurement are being brought under similar requirements, signalling a decisive shift toward an all-electric urban fleet.

Recycling and circular economy push

Beyond adoption, the policy also focuses on what happens after vehicles are retired. It calls for the development of supporting systems such as battery recycling and disposal and mandates a framework for collection, traceability and environmentally sound management of waste batteries.

This lays the foundation for a circular ecosystem where end-of-life batteries can be reused or processed to recover materials — an increasingly strategic priority as India looks to reduce dependence on imported critical minerals.

Taken together, these measures point to a shift from incentive-led adoption to a compliance-driven system, where vehicles are not just sold, but phased out, replaced and recycled within a defined regulatory framework.

Dealers at the centre of execution

Within this evolving system, auto dealers are emerging as critical execution points. From enabling EV adoption at the point of sale to supporting charging infrastructure and facilitating scrappage linkages, their role is expanding beyond traditional retail.

Industry stakeholders, however, are calling for a calibrated transition. FADA President C S Vigneshwar said the shift must account for the 17,500 professionals linked to Delhi’s auto retail ecosystem. “While we fully support the city’s commitment to a greener future, it is vital that this transition includes those whose livelihoods are woven into it,” he said, adding that enablement must move faster than enforcement.

FADA Delhi Chairperson Shailender Luthra said dealers are already aligning with the transition, with proposals to set up charging stations and vehicle scrappage centres as EV adoption gathers pace in the capital.

From adoption to system-level change

As the policy shifts toward enforcement and lifecycle management, Rekha Gupta framed the transition as one that goes beyond adoption to systemic change. “We are committed to the mission of a ‘Clean Delhi, Green Delhi, and Smart Delhi’… To tackle pollution at its source, we are revolutionising our transportation sector through automated fitness centres to ensure every vehicle on our roads is fit and emission-free,” she said, urging dealers to act as the government’s “working hands” in accelerating the shift.

Published on April 17, 2026