Delhi Government Rolls Out Triple Subsidy Policy to Accelerate Electric Vehicle Adoption
The Delhi government announced a new electric vehicle (EV) promotion policy on July 30, introducing large-scale subsidies for two-wheelers, three-wheelers, and four-wheelers. Under the policy, buyers of new electric two-wheelers can receive up to 45,000 rupees (approximately NT$15,000) in subsidies. The government aims to ensure that electric vehicles make up the "majority" of new vehicle sales by 2027 and projects that electric two-wheeler sales will grow from the current 500,000 units to 250,000–300,000 units next year.
The Delhi government stated that the subsidy policy is designed to accelerate the reduction of transportation emissions, as two- and three-wheelers account for nearly 70% of road transport in Delhi and are a major source of carbon emissions. The government plans to allocate a budget of 150 billion rupees (approximately NT$50 billion) to promote the electrification policy, a figure far exceeding Taipei City Government’s annual budget of NT$150 million for electric two-wheeler subsidies.
Subsidies Cover Tax Exemptions, Scrappage Incentives, and Battery Capacity-Based Subsidies
The new policy consists of three main subsidy components. First, electric two-wheelers are exempt from road tax and registration fees, while four-wheelers priced below 36,000 US dollars (approximately NT$1.17 million) also qualify for tax exemptions. Second, scrappage incentives are available: owners of old two-wheelers can receive 10,000 rupees (approximately NT$3,392), plus an additional 5,000 rupees from the central government, while owners of old four-wheelers can receive 100,000 rupees (approximately NT$33,000).
The core subsidy mechanism is based on battery capacity, with 10,000 rupees provided per kilowatt-hour (kWh), up to a maximum of 30,000 rupees for two-wheelers. For battery-swapping models like Gogoro’s dual-battery scooters, subsidies are calculated based on the total battery capacity. When combined, the three subsidies can total up to 45,000 rupees for new electric two-wheelers, nearly halving the price of mainstream models, which typically cost around 100,000 rupees (approximately NT$34,000). For four-wheelers, the previous subsidy cap of 150,000 rupees has been exhausted, and the current policy offers a cumulative maximum of 100,000 rupees.
Delhi’s Electric Vehicle Market Holds Vast Potential, Taiwanese Brands Poised to Benefit
Delhi currently has a total of 8.7 million registered vehicles, with annual sales of two-wheelers exceeding 500,000 units, surpassing Taiwan’s total annual sales of 700,000 units. The government expects that, driven by the subsidy policy, electric two-wheeler sales will surge to 250,000–300,000 units next year, nearly tripling the current figure.
The subsidy policy presents a significant opportunity for Taiwanese electric two-wheeler brand Gogoro and its partner Hero Motor. Hero Motor is the second-largest electric two-wheeler brand in India, and Gogoro’s battery-swapping technology has also gained support under Delhi’s subsidy policy, including incentives for the construction of battery-swapping stations. Gogoro’s previous expansions in South Korea, Japan, Europe, and Southeast Asia have yielded limited results, but Delhi’s large-scale subsidy policy could serve as a critical breakthrough for the company in the Indian market.
The Delhi government emphasized that two- and three-wheelers account for nearly 70% of road transport in the city. By incentivizing large-scale replacement of these vehicles, the policy is expected to significantly accelerate the reduction of transportation emissions. Following implementation, the policy is projected to drive rapid growth in the electric vehicle market and inject new momentum into the related industrial chain.
