New Delhi to pay motorists to scrap older cars for EVs

NEW DELHI: Authorities in India’s capital have approved a new electric vehicle policy that includes cash payments for motorists who replace older cars with battery-powered models, as the city steps up efforts to tackle severe air pollution.

Under the policy finalised on Monday, car owners who scrap a vehicle bought before April 1, 2020 and switch to an electric vehicle will receive a scrapping incentive of $1,060. Buyers of battery electric cars priced at up to 3 million rupees will also be exempt from road tax and registration charges, which usually account for 4pc to 10pc of a vehicle’s price.

The four-year policy has an outlay of 150 billion rupees, or $1.59 billion, and is aimed at encouraging the purchase of electric two-wheelers, cars and small trucks, while also expanding charging infrastructure. Buyers of electric scooters and motorbikes will receive 30,000 rupees in the first year of the policy, with that incentive set to decline to 10,000 rupees by the third year.

New Delhi, one of the world’s most polluted cities, regularly sees air quality deteriorate in winter when dense, stagnant air traps emissions from crop burning in neighbouring states, vehicle fumes and construction dust. The new policy also sets a future deadline for a broader transition in the two-wheeler market, with the government planning to register only electric two-wheelers in 2028.