Is Delhi’s EV policy best in the world?:China gives higher discount than India on EV purchases

The government of Delhi has notified the “Delhi Electric Vehicles Policy 2026”. The Rekha Gupta government will spend a massive ₹15,000 crore over the next four years on the brand-new Electric Vehicle (EV) Policy to encourage citizens to switch from petrol or diesel vehicles to clean electric ones. Delhi Electric Vehicles Policy 2026 – Nitty Gritty If you own an old petrol or diesel car (BS-IV standard or older) in Delhi, the government will pay you ₹1,00,000 in cash just to scrap it and buy new EV. To get this cash, you must buy a new electric car that costs less than ₹30 lakh. On top of this cash, the government will also give you 100% free road tax and free registration charges for your new environment-friendly baby. Is Delhi’s EV Policy the Best in the World? Does any other country give this much cash to scrap an old car and buy an EV? No, Delhi is not the highest in the world, but it is the best in India and one of the highest globally. If we look at China, their 2026 policy gives a 12% cash rebate on the price of a new electric car when you scrap an old one. This rebate goes up to 20,000 Yuan (around $2,943 or ₹2.80 lakh). China gives more cash than Delhi, but China’s system favors more expensive cars. Here is how scrapping rewards look across different regions: Scrapping Cash Rewards for Old Cars Price of Electric Cars in Different Countries Electric cars cost different amounts of money around the world. China makes the cheapest electric cars, while the US sells very expensive ones. India sits right in the middle. Starting Prices of Electric Cars Incentives: Delhi vs. The World Apart from scrapping old cars, how do governments help you save money when buying a new EV? Delhi (2026): Gives total exemption from road tax and registration fees for cars under ₹30 lakh. It also gives up to ₹30,000 for buying electric scooters and bikes in the first year. United States: Gives a tax credit of up to $7,500 (7.05 lakh) to citizens who buy an approved electric car. They do not hand out direct cash. France: Gives a discount of €5,000 to €7,000 or ₹5 lakh to ₹7 lakh, but only if the electric car is manufactured inside Europe, according to ‘Clean Mobility Shift.’ Germany: Has completely stopped giving cash subsidies to regular buyers to save government funds, according to a report by ‘World Resources Institute.’ Delhi’s new policy is incredibly strong. Delhi’s policy is a massive step forward for India. Delhi is also using strict rules alongside cash. From January 2027, Delhi will only allow new electric auto-rickshaws to be registered. Even bigger: from April 2028, Delhi will completely stop registering new petrol or CNG scooters and motorcycles.