Delhi plans to end ICE two-wheeler registrations from April 2028

The government has urged automakers to prepare for tighter ICE-vehicle norms, while Delhi plans EV-only rules for select categories: three-wheelers and N1 goods carriers from January 2027, followed by an end to new ICE two-wheeler registrations in April 2028.

— Source publishedThu, 3 Sept, 2026, 20:17 IST·First seen Thu, 3 Sept, 2026, 20:21 IST·Source The Hindu BusinessLine

What happened

Indian Auto Industry · Government signalled stricter nationwide ICE-vehicle rules, potential tax changes and battery-import restrictions. Delhi will phase out

Key facts

  • ICE two-wheeler registrations in Delhi to end from April 1, 2028
  • Only electric three-wheelers and N1 goods carriers permitted in Delhi from January 1, 2027
  • Electric three-wheelers account for about 50% of segment sales versus a 10% target by 2026
  • Electric two-wheelers account for 7% of segment sales
  • EV share in three-wheelers could reach 75% in two to three years
  • Subsidies may end within four to five years

Why this matters

The policy creates a window to acquire or partner with EV distribution, charging, battery-service and technician-training businesses before regulatory-driven demand intensifies.

What to watch

  • Publication of final Delhi notification, legal authority, exemptions, enforcement penalties and whether the April 2028 date applies uniformly to all new two-wheeler registrations.
  • Availability of state or central replacement incentives, scrappage support, GST changes, financing subsidies or fleet-focused incentives after current subsidies phase down.
  • Monthly Delhi EV registration share by two-wheelers, three-wheelers and N1 carriers, plus EV order cancellations and dealer inventory days.
  • Charging-point and battery-swapping deployment in residential areas and commercial delivery zones, alongside electricity-connection approval times and utilization rates.
  • Affordable EV launches, battery warranties, real-world range improvements and price gaps versus comparable ICE two-wheelers.
  • Consumer-finance approval rates, loan-to-value terms, insurance premiums and residual-value performance for electric two-wheelers.
  • Court challenges, election-cycle policy changes, industry lobbying and any slippage in the 2027 three-wheeler/N1 deadline.
  • Accelerate Delhi-specific EV model launches across commuter scooters, cargo three-wheelers and N1 goods carriers, with price points targeted at high-volume ICE replacement segments.
  • Build dealer EV readiness: certified technicians, high-voltage safety equipment, battery diagnostics, spare-parts stocking, resale assessment and warranty-claims processes.
  • Use financing, leasing and battery-as-a-service offerings to reduce upfront-price friction, particularly for gig workers, delivery fleets and small commercial operators.
  • Secure charging and battery-swapping partnerships near dense residential clusters, delivery hubs, retail corridors and dealer locations.
  • Manage ICE inventory conservatively from 2027 onward while using targeted pre-deadline promotions to avoid stranded stock after the two-wheeler cutoff.
  • Expand used-EV inspection, refurbishment and trade-in capabilities, as post-policy affordability demand should increase the importance of reliable secondary-market supply.

Also reported by