Delhi Refuses To Buy EVs Despite Old Car Ban - This Is The Reason

Once hailed as a national leader in electric mobility, Delhi is now facing a sharp decline in electric vehicle (EV) adoption. Despite aggressive bans on older polluting cars and lofty policy goals, the capital’s EV sales have plummeted to levels not seen since before the pandemic. The shift has exposed major gaps in policy execution, financial planning, and public confidence, turning what was once a success story into a cautionary tale.

From Leader to Laggard in Just 18 Months

In December 2023, electric vehicles accounted for nearly one in five new vehicle registrations in Delhi. With a 19.5 percent share, the city stood as a role model for other Indian states. But by July 2025, that share had fallen to just 4.8 percent. Only 3,425 EVs were sold out of 67,000 total vehicles, despite bans on diesel and petrol vehicles older than 10 and 15 years, respectively.

What caused such a drastic reversal? The key turning point was the withdrawal of EV purchase subsidies in January 2024. Initially introduced under the Delhi Electric Vehicle Policy in 2020, these cash incentives had made EVs affordable and appealing. But with the subsidy programme halted and no clear communication from the new BJP-led state government, interest in electric vehicles evaporated.

Cash Crunch and Policy Paralysis

The subsidy package that once made EVs cost-competitive was generous. Two-wheelers were eligible for ₹5,000 per kilowatt-hour of battery capacity, up to ₹30,000 per vehicle. E-rickshaws and e-carts received flat ₹30,000 support, and electric cycles enjoyed a 25 percent discount capped at ₹5,500. These amounts often helped tip the financial scale in favour of EVs.

When the Aam Aadmi Party lost power and the BJP took over, many expected a renewed or expanded subsidy programme. Instead, the government extended the EV policy’s validity without reinstating the financial incentives. As a result, consumers waiting for clarity on pricing or future subsidies simply walked away.

To make matters worse, an unpaid sum of ₹48.36 crore remained due to buyers who had already purchased EVs with the expectation of receiving subsidies. This eroded public trust further, especially among buyers who were unsure how or whether to claim their dues.

Buyers Head Across the Border

The withdrawal of Delhi’s incentives coincided with attractive EV policies in neighbouring states. In Uttar Pradesh, for example, transport officials say electric cars became up to ₹3 lakh cheaper thanks to local subsidies. This led to a trend where Delhi residents began registering their new electric cars in NCR towns like Ghaziabad and Gautam Budh Nagar.

This cross-border shift not only undermined Delhi’s own EV targets but also showed how state-level competition for incentives could reshape consumer behaviour. With Maharashtra, Gujarat, and even Uttar Pradesh maintaining or expanding their EV policies, Delhi’s lack of initiative put it at a disadvantage.

The fallout extended beyond lost registrations. Manufacturers who had tailored their EV lineups for Delhi’s once-promising market were now left with shrinking sales and unclear demand forecasts. Many had priced their products based on subsidy assumptions and were now revisiting their strategies.

Policy Delays and Missed Opportunities

The current EV policy aimed for 25 percent adoption by 2024. With the current rate under 5 percent, that goal is now clearly out of reach. This failure is especially stark given that Delhi had the highest EV penetration in March 2022, touching 12.5 percent in a single month. It’s clear now that consistent support was crucial to sustaining that growth.

Moreover, the city’s strict ban on older vehicles should have created a natural window for EV replacements. Instead, buyers opted for new petrol or diesel vehicles, unwilling to take a chance on EVs without subsidies.

Even procedural hurdles hurt adoption. Buyers were required to link Aadhaar numbers with mobile and bank accounts to claim subsidies, a step that created confusion and delays. Many eligible consumers never completed the process or assumed the scheme had ended.

The draft EV Policy 2.0, which remains under development, promises a more structured approach. Proposals include subsidies up to ₹36,000 for women buying electric two-wheelers and ₹10,000 per kilowatt-hour capped at ₹30,000 for others. But delays in finalising the policy have only prolonged the uncertainty.

Can Delhi Regain Its EV Momentum?

The broader consequences go beyond vehicle sales. Delhi continues to face some of the worst air quality levels globally, with vehicular emissions a significant contributor. The EV policy was never just about technology, it was part of a larger fight for cleaner air and healthier urban living.

Now, Delhi risks losing its leadership position in electric mobility. Other states are moving ahead with firm incentives, strong policy frameworks, and public engagement. Delhi, meanwhile, is caught in a holding pattern, with unclear plans and eroding market trust.

Recovering from this setback will require more than just reinstating old subsidies. It will take coordinated action, clear timelines for EV Policy 2.0, prompt payment of pending dues, simplified subsidy disbursal mechanisms, and a sustained commitment to clean mobility.

Without these changes, Delhi’s experience may serve as a lesson in how quickly momentum can be lost and how difficult it can be to regain. The capital’s journey from being a beacon of electric vehicle adoption to a lagging participant is a stark reminder that policy intent alone is not enough. Execution, consistency, and credibility matter just as much.