Quick Highlights

  • ₹50,000 incentive proposed to convert petrol/diesel cars into electric vehicles
  • Benefit limited to first 1,000 vehicle conversions
  • Part of Delhi EV Policy 2.0, expected in Q1 2026
  • Focus on reducing pollution without scrapping existing cars

Don’t Scrap Your Old Car — Convert it into an EV, Says Delhi Govt

Delhi may soon offer car owners a cleaner and more economical alternative to scrapping their old vehicles. Under the proposed Delhi EV Policy 2.0, the Delhi government plans to introduce a ₹50,000 incentive for owners who convert their existing petrol or diesel cars into electric vehicles.

The move, reported by TOI, marks a first-of-its-kind initiative in India, aiming to reduce vehicular pollution by transforming existing cars rather than relying solely on new EV sales.

Delhi Air Pollution - Cars and Traffic
Delhi Air Pollution - Cars and Traffic

What Is the ₹50,000 Retrofitting Incentive?

As per the draft recommendations of EV Policy 2.0, vehicle owners who retrofit their petrol or diesel cars into electric vehicles will be eligible for a one-time incentive of ₹50,000.

  • The scheme will apply only to the first 1,000 vehicles
  • Incentive aims to offset the high cost of EV conversion

Retrofitting involves replacing the internal combustion engine, fuel system, and exhaust components with an electric motor, battery pack, and electronic controls, allowing owners to continue using their existing vehicle in a cleaner form.

Why Delhi Is Pushing Vehicle Retrofitting

Retrofitting is gaining policy attention because it addresses pollution without forcing consumers to buy new vehicles. While EV adoption is rising, the high upfront cost remains a barrier for many car owners.

Acknowledging this, Delhi’s transport department plans to:

  • Invest more in research and development
  • Engage specialists to study the retrofitting ecosystem
  • Explore ways to make conversions safer, regulated, and affordable
EV Policy, EV subsidy
EV Policy, EV subsidy

EV Policy 2.0: A Broader Clean Mobility Strategy

The retrofitting incentive is part of a larger push under Delhi EV Policy 2.0, which aims to accelerate clean mobility across segments.

Key policy directions include:

  • Revival of consumer EV subsidies
  • Support for local EV manufacturing
  • Expansion of charging and power infrastructure

The current Delhi EV Policy has been extended until March 2026 or until the new policy is officially notified.

Big Push for Electric Two-Wheelers

Electric two-wheelers remain central to Delhi’s electrification plans. Under the proposed policy:

  • Standard subsidy: ₹21,000 per electric two-wheeler
  • Women buyers may receive up to ₹30,000 subsidy
  • Benefits capped at 1 lakh vehicles
  • Adoption target raised from 5 lakh to 12 lakh electric two-wheelers
Cars on city street photo
Cars on city street photo

What About Electric Car Subsidies?

Private electric cars are also set to benefit, though with stricter conditions:

  • Only EVs priced below ₹25 lakh may qualify
  • Proposed subsidy: ₹10,000 per kWh, capped at ₹1 lakh per vehicle
  • Limited to the first 27,000 private electric cars

To further ease adoption, the policy suggests an interest subvention scheme, where the government would cover 5% of loan interest for eligible EV buyers.

What Happens Next?

According to officials, the proposal has already been discussed in a high-level government meeting. While some changes may be introduced, the overall structure is expected to remain intact.

If approved, the ₹50,000 EV retrofitting incentive could give old petrol and diesel cars a second life — this time as part of Delhi’s electric future, not its scrapyards.

EV Car in city with renewable energy
EV Car in city with renewable energy

FAQs on Delhi EV Policy 2.0 Retrofitting Incentive

1. What is the Delhi EV retrofitting incentive?

  • It is a proposed ₹50,000 subsidy for converting petrol or diesel cars into electric vehicles under EV Policy 2.0.

2. Who is eligible for the ₹50,000 incentive?

  • Owners of petrol or diesel cars who retrofit their vehicles into EVs, limited to the first 1,000 conversions.

3. When will Delhi EV Policy 2.0 be implemented?

  • The policy is expected to be rolled out in the first quarter of 2026, after public consultations.

4. Is retrofitting legal in India?

  • Yes, retrofitting is legal if done using approved kits and certified by authorized testing agencies.

5. Will new electric cars still get subsidies in Delhi?

  • Yes, private EVs priced below ₹25 lakh may receive subsidies up to ₹1 lakh, along with loan interest support.

6. Why is Delhi promoting retrofitting instead of scrapping vehicles?

  • Retrofitting reduces pollution, saves resources, lowers costs for consumers, and avoids unnecessary scrappage of usable vehicles.