Delhi EV Policy 2.0 Set to Surge Electric Vehicle Adoption; Nomura Highlights Mahindra and Ather as Key Beneficiaries
Delhi has unveiled a sweeping new policy designed to aggressively accelerate electric vehicle (EV) adoption across the state. The newly approved Electric Vehicle Policy 2.0 aims to drive structural changes in the market, positioning itself as a significant blueprint for other large states. Nomura’s report identifies several key manufacturers poised to benefit massively from this robust governmental push.##Financial Commitments Under Delhi's EV Policy 2.0
The policy is scheduled to come into effect on July 1, 2026, and maintain validity until March 31, 2030. To support the transition, the state government has committed a substantial investment totaling Rs 150 billion over FY27-FY30. This commitment is strategically allocated across two major areas of EV growth.
Of the total investment, Rs 70 billion will be dedicated specifically to EV purchase incentives. The remaining Rs 80 billion is earmarked for bolstering charging infrastructure and providing necessary tax concessions.
##Key Mandates Impacting Vehicle Registration
The policy introduces firm timelines intended to pivot consumers towards electric mobility. Beginning January 1, 2027, only electric autorickshaws will be eligible for new registrations within Delhi. Furthermore, the transition accelerates significantly as the registration of all new petrol and CNG two-wheelers will cease starting April 1, 2028.
##Purchase Incentives and Tax Benefits Detailed
The EV Policy 2.0 provides comprehensive benefits designed to incentivize consumers across various vehicle categories. This includes specific purchase incentives for electric two-wheelers, three-wheelers, and light commercial vehicles (LCVs). Additionally, the policy grants full exemption from road tax and registration fees for all electric passenger vehicles priced up to Rs 30 lakh.
##Beneficiaries in the Automotive Ecosystem
Nomura suggests that this initiative will solidify a long-term structural EV adoption narrative in India. For manufacturers, Mahindra & Mahindra is expected to gain substantially due to its expanding EV portfolio, while Tata Passenger Electric Mobility is also well-positioned as EV penetration increases.
In the two-wheeler segment, Ather Energy is highlighted by Nomura as one of the primary beneficiaries given its status as a pure-play electric two-wheeler manufacturer. The policy shift means legacy manufacturers may face volume reduction as the market decisively transitions towards EVs.
##Support for Components and Infrastructure Growth
The report underlines that incentives for electric commercial vehicles and sustained investment in charging infrastructure are integral components designed to robustly support overall EV adoption.
For the auto component sector, the policy presents a clear positive outlook for several companies. Nomura noted particular benefits for Sona Comstar, Motherson Sumi, and Uno Minda due to their direct exposure and involvement with crucial EV components.
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