The policy introduces fiscal incentives for electric vehicles, exemptions from road tax and registration charges for eligible vehicles, scrappage incentives for older vehicles, a significant expansion of charging infrastructure, and a phased transition towards electric mobility across various vehicle categories. The government has also announced a proposed investment of around ₹15,000 crore to support the development of the EV ecosystem during the policy period.

“The Policy reinforces the role of clean mobility as a key driver of Delhi’s future economic growth and sustainable urban development. By providing greater policy certainty, it is expected to improve the investment climate, accelerate innovation in electric mobility technologies, expand domestic manufacturing, and create employment across the EV ecosystem. At the national level, the Policy aligns with India’s broader objective of strengthening globally competitive manufacturing through the Make in India initiative”, said Rajeev Juneja, President, PHDCCI.

The policy extends well beyond promoting electric vehicle adoption and has the potential to stimulate investments across multiple sectors, including battery manufacturing, charging infrastructure, renewable energy integration, power distribution, electronics, automotive components, software solutions, fleet management, financing, recycling and circular economy services.

Key Highlights & Provisions

The Delhi EV Policy 2.0 (running through 2030) introduces ambitious subsidies, scrappage benefits, and stricter mandates to promote greener transport.

1.      Tax Exemptions: 100% waiver on road tax and registration fees for EVs priced up to ₹30 lakh (ex-showroom).

2.      Purchase Subsidies: Incentives of up to ₹30,000 for electric two-wheelers and up to ₹50,000 for three-wheelers.

3.      Scrappage Incentives: Up to ₹1 lakh incentive for scrapping old BS-IV or older cars.

4.      Deadlines for ICE Vehicles: No petrol motorcycles/scooters can be registered after March 31, 2028, and new CNG auto-rickshaw registrations are set to stop at the end of 2026.

5.      Charging Network: Expanded infrastructure mandates that require every EV dealership to host public charging stations.

“The planned expansion of public charging facilities and battery-swapping infrastructure is expected to stimulate investment across multiple segments of the electric mobility ecosystem. Opportunities are likely to emerge for infrastructure developers, private investors, technology firms, and start-ups engaged in EV-related services. As electric vehicle adoption accelerates, demand is also expected to rise for advanced battery technologies, power electronics, semiconductors, charging hardware, digital payment platforms, predictive maintenance applications, and intelligent energy management solutions”, said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.

The policy will deliver important macroeconomic benefits through reduced dependence on imported fossil fuels, lower urban emissions, improved public health outcomes and increased private investment in future-ready industries. The policy is also expected to encourage innovation in electric mobility technologies while supporting India’s commitments towards sustainable development and the transition to a low-carbon economy.

Further, the policy aligns with several national initiatives, including the Production Linked Incentive (PLI) Schemes for the automobile and Advanced Chemistry Cell (ACC) battery sectors, the National Electric Mobility Mission and India’s target of achieving net-zero emissions by 2070. Together, these initiatives can strengthen domestic value addition, enhance supply chain resilience and improve India’s competitiveness in the global EV market.

PHDCCI works closely with policymakers, and industry stakeholders to support effective implementation of the policy and facilitate the development of a robust, competitive and sustainable electric mobility ecosystem that contributes to economic growth, industrial transformation and environmental sustainability.

India is gaining momentum for extensive EV adoption, and the country’s policies are rapidly being defined and aligned to match that ambition. Yet among all the dimensions being debated, including incentives, tariffs and manufacturing mandates, one area stands above the rest when viewed through the consumer’s lens: the establishment of an efficient, effective and robust public charging infrastructure, including the deeply complex question of grid stability. Range anxiety remains an important concern from end users’ point of view, and while technologies that help increase range are steadily evolving, having an extensive, affordable and reliable public charging infrastructure would be a genuine piece of mind and a true catalyst for accelerating EV adoption to meet the 2030 goals laid down by the Government of India.

The scale of the challenge is stark. As of now, the scale of charging infrastructure is much less than what is currently required or envisaged for the near future, and whatever is available also isn’t reliable for high uptime. As a ball park, India needs almost 50x of charging stations compared to what it has today and that too highly reliable ones. Strengthening this has to be an outcome of several dimensions, requiring close coordination and policy alignment between equipment manufacturers, charging point operators, energy distribution companies and ministries like the power ministry and road transport and highway ministry, alongside policy think tanks and innovative technology companies that can leverage contemporary technologies like AI/ML, big data and analytics. Technology intervention is a must to create the required intelligence that can build a nationwide, data-driven intelligent ecosystem, one that is able to offer a countrywide integrated and reliable public charging infrastructure.

Underneath the charging network lies an equally urgent question: who makes the components? One of the major bottlenecks for the Indian industry has been its heavy reliance on imported semiconductors. With a major transition towards EV adoption underway, the need for such components will be extensive, be it for batteries, Battery Management Systems (BMS), EV electronic components, public charging infrastructure or smart grids and smart metering, just to name a few. Unless these needs are majorly fulfilled by local manufacturers, this could lead to a massive surge in imports. Localization and semiconductor manufacturing will therefore play a very critical role in the success of the EV market and EV future as a whole. It is something that must be taken up in a mission critical mode. It will help reduce import dependencies as well as drive affordability. The government is already providing the required help and working in close association with the industry for making India a global hub for chip manufacturing in the near future.

None of this, however, will matter if the vehicles themselves aren’t safe. Thermal management and battery safety are the very basic and very important aspects that are a must for accelerating EV adoption. India witnessed some odd incidents of EVs catching fire in the recent past. While such incidents have happened with fossil fuel-run vehicles also, anything new that is coming up causes more concern and draws higher attention. Utmost attention in terms of policies, manufacturing, quality control and operational and charging safety needs to be institutionalized at all levels to eliminate any such problems that can be a speed breaker in EV adoption. At a policy level, the government has already mandated strict norms like AIS-156, which focus on battery safety, thermal management and more reliable battery management systems. At a field level, more attention needs to be paid in terms of do’s and don’ts, proper training for safety, battery handling, charging, replacing, over-loading and short circuits in a more formalized and safe manner, instead of a ‘jugaar mindset’.

Taken together, charging infrastructure at scale, domestic semiconductor capability and uncompromising battery safety form the foundation of something far larger: India’s credible bid to become a global hub for EV manufacturing and innovation by 2030. An added advantage is that India is already a preferred global hub for automobile manufacturing. The entire ecosystem being envisioned through government-driven policies in terms of chip manufacturing, battery-related innovations, EV production, power sector reforms and infrastructure growth can surely take India closer to this goal. A lot is happening at the global level too on these subjects, which can be considered as macro-level environmental risks. Localization, innovation and efficient execution will be the critical factors to accomplish this target and the way the EV momentum is going, it is a high possibility that India turns out to be exactly that.

New Delhi, 18 December 2025 | In a first-of-its-kind move that brings together sustainable mobility and conscious lifestyle rewards, Fabindia has partnered with Mahindra Electric Origin SUVs to introduce a benefit for Fabfamily members. Customers can now book premium electric SUVs using loyalty currency alone — just 1,000 Fabcoins, boosted to a booking value of ₹21,000. This collaboration between two iconic Indian brands — both deeply rooted in sustainability and innovation — sets a new benchmark for how loyalty programs can deliver meaningful, real-world value far beyond traditional discounts.

 A milestone in loyalty innovation

Through this partnership, Fabfamily members can now redeem their Fabcoins to book Mahindra’s Electric Origin SUVs, namely the BE 6 and the XEV 9e. The offer effectively allows customers to secure a premium eSUV booking entirely through loyalty earnings, making Fabfamily one of the most generous and innovative loyalty programs in the country. William Nanda Bissell, Managing Director, Fabindia Ltd, said: “Fabfamily was built on the belief that loyalty should create extraordinary value and not just transactional benefits. Partnering with Mahindra allows us to demonstrate that belief at its boldest: enabling our members to book an Electric Origin SUV using just 1,000 Fabcoins. It’s an unprecedented 21X value unlock and a proud moment for us as two Indian brands come together to promote conscious consumption, sustainable mobility and customer empowerment.  For us, this reward is a signal of where modern loyalty programs are headed: towards becoming unreasonably generous, personalised and caring.”

Nalinikanth Gollagunta, Chief Executive Officer – Automotive Division, Mahindra & Mahindra Ltd. and Executive Director, Mahindra Electric Automobile Ltd, said: “At Mahindra, we believe the future of mobility is not just electric, it is experiential, accessible, and deeply integrated into the lifestyle of our customers. This partnership with Fabindia is a powerful example of how two purpose-driven brands can come together to redefine value. It’s a step forward in democratizing eSUV ownership and creating meaningful touchpoints that go beyond the vehicle itself.”

Fabfamily: Building India’s Most Distinctive & Generous Loyalty Ecosystem

Fabfamily is designed as a long-term lifestyle ecosystem that rewards intent, continuity and conscious choices. Key program features include:

• • Earn Generously: Up to 10% back in Fabcoins on every Fabindia purchase.
  • Secure-Now, Redeem-Later: Members can lock an eSUV booking with 400 Fabcoins and complete the balance over time. Once 1,000 Fabcoins are accumulated, the booking is auto-processed.
  • Partner Multipliers: Premium brand collaborations, including The Oberoi Hotels & Resorts and Indian Accent, offering up to 30X value on Fabcoin redemption.
  • Cause Contributions: The ability to donate Fabcoins towards WWF-India and the Centre for Science & Environment; because generosity works both ways.
  • FabONE: Concierge services that enrich the customer journey.
  • Gentle Tier Migration: A unique “single-tier downgrade” policy makes retaining status easier and more customer-friendly.

Fabfamily’s latest evolution is built on choice architecture, emotional loyalty and long-term affinity moving beyond points-for-discounts into high-utility, high-experience, life-enhancing rewards.

The partnership with Mahindra Electric Origins SUVs demonstrates how loyalty programs can influence the future of mobility, sustainability and lifestyle consumption in India.

The Mahindra eSUV reward will go live on 19th December 2025.