The new Electric Vehicle (EV) policy proposed by the Delhi Transport Department is making waves, impacting both vehicle manufacturers (OEMs) and residents in the National Capital Region (NCR). The policy includes several major changes that could pose challenges for businesses and consumers alike.
One of the biggest changes is the plan to phase out CNG-powered autos. According to the new policy, no new CNG three-wheelers will be allowed to register in Delhi after August 15 this year. Additionally, older CNG autos that are more than ten years old will have to be fitted with electric powertrains, which could create complications for the three-wheeler market in India.
Will the New Delhi EV Policy 2.0 Work?
The most controversial part of the policy is the proposal to stop the registration of new petrol or CNG-powered two-wheelers in Delhi after August 2025. At first glance, this move seems rushed, especially since global EV sales have started to plateau. A recent Deloitte report found that interest in fully battery-powered vehicles (BEVs) dropped from 10% in 2024 to 8% in 2025 worldwide.
However, experts believe the policy will be disruptive in the short term but could lead to positive change in the long run. Rajat Mahajan, a partner at Deloitte India, explained that while the shift will create challenges, it might be necessary to boost EV adoption. He cited China as an example, where they banned petrol motorcycles and provided incentives, leading to significant growth in the EV sector.
Read More: Big Changes Coming to the Hyundai Venue – Spy Shots Reveal Shocking Details!
Need for Better EV Infrastructure
While the push for EVs is clear, the necessary infrastructure is still lacking. One key issue is the battery, which powers electric vehicles. To support the growth of EVs, the industry needs to build a strong network of charging stations and systems for battery recycling and disposal.
Although the number of charging stations has increased, it is still not enough to support the growing number of EVs on the road. Additionally, plans for recycling old EV batteries are still not in place. With the batteries in first-generation EVs nearing the end of their lifespan, this issue is becoming more urgent.
Mahajan pointed out that recycled batteries could be much cheaper—sometimes half the cost of a new battery. This could lead to a profitable business model, especially since EV ownership in India tends to be shorter than the battery’s warranty period. As the EV market grows in India, battery recycling could become a $100 billion industry by 2035.
Read More: Delhi’s Bold EV Policy: Is the City Ready for a 100% Electric Future by 2030?
Hydrogen Fuel Cells: A Possible Alternative?
While EVs are gaining popularity, there is also growing interest in hydrogen fuel cells, which could offer a cleaner mobility solution. Unlike EVs, hydrogen fuel cells don’t rely on charging stations, making them more suitable for markets like India.
However, Mahajan believes hydrogen fuel-cell vehicles won’t be commercially viable for passenger cars by 2030, as the technology is still developing. But he sees potential for hydrogen in commercial vehicles.
Atul Jairaj, another expert from Deloitte India, agreed, saying that hydrogen’s role in the market will likely grow after 2040, with the main benefit being energy independence and carbon neutrality. He believes green hydrogen could play a big role, but it’s still a long-term project.
Read More: KTM 390 Enduro R Is Finally Here – Adventure Riders, Don’t Miss This One!
In summary, while the new Delhi EV policy could cause disruptions, it is pushing India in the direction of a greener, more sustainable future. However, the country will need to focus on improving EV infrastructure, battery recycling, and exploring alternative energy sources like hydrogen to fully support this transition.
