The Delhi government has raised the stakes in its fight against air pollution, unveiling the proposed Electric Vehicle (EV) Policy 2.0, which targets 95% of all new vehicle registrations to be electric by 2027. This marks a dramatic increase from the earlier goal of 25% by 2024, reflecting growing urgency to curb the city’s notorious smog and position Delhi as India’s EV adoption leader.
Pollution Crisis Fuels Aggressive Shift
Delhi’s air quality remains a public health emergency, with the city often cloaked in thick smog during winter months.
When cold air traps pollutants close to the ground, residents face AQI levels often exceeding 400, far beyond the World Health Organization’s safe limit of 5 μg/m³ for PM2.5. This toxic air, laden with fine particulate matter (PM2.5), nitrogen dioxide, and sulfur dioxide from vehicular emissions, stubble burning, and industrial sources, triggers a surge in respiratory illnesses like asthma, bronchitis, and chronic obstructive pulmonary disease (COPD).
Hospitals report spikes in emergency visits for coughing, wheezing, and shortness of breath, particularly among children and the elderly, with studies estimating that air pollution cuts Delhiites’ life expectancy by up to 10–12 years. Winter also amplifies cardiovascular risks, with pollutants linked to heart attacks and strokes, while prolonged exposure is associated with lung cancer and developmental issues in kids
Vehicular emissions contribute roughly 27% of the city’s PM2.5 pollution, compounded by industrial activity and regional stubble burning. The Air Quality Index (AQI) frequently spikes above 300—classified as “severe”—prompting measures like vehicle rationing and school closures. Health data links this pollution to thousands of premature deaths annually, driving the government’s push for cleaner transport.
Delhi government has implemented several aggressive measures to combat the city’s worsening air pollution, such as real-time drone surveys to monitor pollution hotspots, a dedicated special task force, and emergency measures like the odd-even vehicle rationing scheme, which restricts cars based on license plate numbers to curb emissions. It also resorts to actions such as a ban on construction, limiting truck entry, and shifting schools online when the Air Quality Index (AQI) crosses into “severe plus” zone. The government has shut down coal-based power plants like Badarpur permanently, mandated cleaner industrial fuels like piped natural gas (PNG), and deployed anti-smog guns and water sprinklers to suppress dust, reflecting a multi-pronged approach to tackle local and seasonal pollution sources.
Meanwhile, the latest new EV policy builds on the success of the original EV framework, launched in 2020, while addressing its shortcomings with a more aggressive timeline and broader scope.
EV Progress to Date
Since the 2020 EV Policy, Delhi has emerged as a frontrunner in India’s electric mobility race. As of early 2025, over 300,000 EVs are registered, supported by 4,793 charging points—a number the government aims to expand to 18,000 by 2026.
Electric buses have been a flagship success, with over 2,000 currently operational, accounting for a significant portion of the city’s public transit fleet. The target is a total of 11,000 buses by 2026, including 8,000 e-buses, phasing out 90% of CNG-powered buses by year-end.
Two- and three-wheelers, critical to Delhi’s transport ecosystem, have also seen electrification, with incentives driving a shift in commercial fleets like delivery services. By late 2024, EVs comprised nearly 20% of new vehicle registrations, a testament to subsidies, tax waivers, and campaigns like Switch Delhi.
Challenges
The leap to 95% EV adoption by 2027 is ambitious. The first is that charging infrastructure, while growing, remains unevenly distributed, with rural and outer Delhi areas underserved. The power grid faces strain, requiring upgrades and integration with renewable energy to sustain demand. A senior official noted, “We need fast-charging corridors and grid resilience—without them, this target is a pipe dream.”
Secondly, cost remains a hurdle. Despite incentives, EVs are pricier than conventional vehicles, and India’s reliance on imported battery components keeps prices elevated. Range anxiety and limited model options further deter adoption, particularly among private buyers. The policy’s plan to phase out CNG vehicles—starting with auto-rickshaws, taxis, and light commercial vehicles—will also test enforcement capacity, given past compliance struggles.
Industry Opportunity
The EV Policy 2.0 is a shot in the arm for India’s EV sector. Domestic manufacturers like Tata Motors and Hero MotoCorp, alongside global entrants like Tesla (set to launch in India in April 2025), stand to benefit from heightened demand. The policy’s focus on charging infrastructure—mandating stations in new buildings and offering subsidies for private setups—could spur a boom in related industries, from battery production to renewable energy.
However, the shift threatens traditional automotive players. Fuel stations and mechanics tied to internal combustion engines face disruption unless they pivot to EV, as the number of ICE vehicles will decline continuously. While there could be job growth in EV servicing, this could lead to a rocky transition for legacy businesses.
A Model for India’s Polluted Cities
Delhi’s aggressive EV push could inspire other Indian cities battling pollution, such as Bengaluru. The policy’s blend of incentives, infrastructure investment, and regulatory muscle offers a replicable framework. The planned Delhi Clean Mobility Centre (DCMC) will monitor progress, potentially serving as a blueprint for regional coordination in the National Capital Region (NCR).
However, states with weaker finances or grids may struggle to match Delhi’s pace. With the EV Policy 2.0 expected to take effect in April 2025, the target of 95% EV registrations by 2027 is a moonshot, but even partial success could slash emissions and set a precedent.
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