Delhi government digs in heels against pushback, no new petrol 2-wheelers from April ’28

Even as it has been facing pushback, the Delhi government has decided to go ahead with the proposed ban on the registration of new Internal Combustion Engine (ICE) two-wheelers from April 2028 under its new Electric Vehicle (EV) policy 2.0, The Indian Express has learnt.

The Indian Express had reported on May 8 that the electrification mandate had drawn sharp opposition from manufacturers and other stakeholders, who had argued that there is a lack of alternatives for personal mobility for a large segment of the population that buys motorcycles.

Many even argued that India’s still-import-dependent battery and rare-earth supply chains, heavily reliant on China, are not yet equipped to support a transition at this scale.

Top industry bodies, including the Society of Indian Automobile Manufacturers (SIAM), had also written to the government that “a mandate prohibiting ICE vehicles, would be counter-productive, potentially undermining consumer welfare and broader economic stability”.

The industry bodies, in the communication, also pointed out that “despite Rs 75,000+ crore investments… by domestic battery giants, the current technology is still lagging in terms of performance and safety standards with respect to Chinese cell manufacturers”.

They had also questioned the net environmental benefit of EV adoption at current energy mix levels and pointed out that around 71% of India’s electricity comes from coal-based power generation (fossil fuels).

The government had released the draft EV policy 2.0 for suggestions and feedback from the public on April 11.

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As per the draft, only electric two-wheelers will be permitted for new registrations in the Capital from April 2028. On similar lines, CNG autos will be banned from January next year.

The policy is expected to be tabled at the Cabinet meeting in the coming week and be implemented from next month, after the current policy, which has been extended multiple times till June 30, expires. Once implemented, it will be valid till 2030.

The proposed two-wheeler electrification mandate and the subsidy on hybrid vehicles have become the most controversial aspects of the policy.

“The government has taken a call on a two-wheeler electrification mandate, but the subsidy on hybrid vehicles is still under consideration,” a source said. Similar to the mandate for two-wheelers and three-wheelers, the policy also proposes mandates for schools buses, fleet aggregators and delivery service providers.

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Experts argue that large-scale fleet transitions require these kinds of mandates. “Countries that have successfully accelerated EV adoption have gone beyond purchase incentives. While incentives can help kick-start electrification, large-scale fleet transition requires strong regulatory signals such as Zero-Emission Vehicle (ZEV) mandates or phasing out of ICE vehicles,” says Amit Bhatt, Managing Director for India at International Council on Clean Transport (ICCT).

“These policies provide automakers with confidence that demand for EVs will be sustained over the long term, encouraging them to ramp up production, invest in innovation, and expand model offerings. Over time, this leads to economies of scale, lower costs, and greater consumer choice, creating a virtuous cycle for EV adoption,” Bhatt argues.

Two-wheelers constitute about 67% of the city’s total vehicle stock, making their electrification crucial for reducing emissions. Electric two-wheelers have accounted for more than 7% of two wheeler registrations in the last two financial years.  So, the government has also proposed major purchase incentives. Buyers purchasing an electric two-wheeler priced up to Rs 2.25 lakh (ex-showroom) will receive an incentive of Rs 10,000 per kWh, up to a maximum of Rs 30,000 in the first year after the date of notification. The incentive will be reduced yearly. In the second year, buyers will receive Rs 6,600 per kWh, capped at Rs 20,000, while in the third year, the incentive will drop to Rs 3,300 per kWh, up to a maximum of Rs 10,000.