Synopsis: Delhi EV policy with Rs 15,000 crore push aims to boost EV adoption through incentives, charging infra and phased fuel vehicle restrictions, creating strong long-term tailwinds for auto and EV stocks.
Such large-scale EV policies tend to act as a long-term tailwind for the entire auto and mobility ecosystem. With clear targets, funding support, and phased restrictions on petrol and CNG vehicles, they usually improve demand visibility for electric vehicles and related infrastructure over time.
For stock markets, this kind of policy often leads to sector-wide re-rating. EV makers, component suppliers, battery-linked companies, and charging infrastructure players generally see stronger investor interest as the shift gains pace. Even traditional auto companies benefit as they accelerate their EV transition to stay competitive in a changing demand cycle.
Here’s what happened and the new policy
The Delhi government plans to invest Rs 15,000 crore between FY27 and FY30, including Rs 7,000 crore for purchase incentives and Rs 8,000 crore for charging infrastructure and tax benefits.
30 Percent EV Target by 2030
The new policy aims to make electric vehicles a bigger part of Delhi’s transport system. The government wants 30 percent of all vehicles in the city to be electric by March 2030. This is expected to increase the use of EVs across two-wheelers, three-wheelers, and passenger vehicles.
Gradual Shift to Electric Vehicles
The policy also sets a timeline for moving away from petrol and CNG vehicles. From January 1, 2027, only electric three-wheelers can be newly registered in Delhi. From April 1, 2028, registrations of new petrol and CNG two-wheelers will also come to an end, encouraging buyers to switch to EVs.
Incentives to Encourage EV Adoption
To make electric vehicles more affordable, the government will continue offering financial support to buyers. Electric two-wheeler buyers can get incentives of up to Rs 30,000, while electric three-wheeler buyers can receive up to Rs 50,000. Private EVs priced up to Rs 30 lakh will also remain exempt from road tax and registration charges.
Brokerages See Positive Impact
Brokerages Nomura and Citi believe the policy could support companies involved in the EV ecosystem, including vehicle makers and component suppliers. However, Citi said more clarity is needed on incentives for hybrid vehicles and noted that successful implementation of the policy will be important.
Stocks that can benefit from the EV push
PV Segment
Mahindra & Mahindra is expected to remain one of the key players in the passenger vehicle space, especially in SUVs and EVs. The company is focusing more on electric SUVs and new launches, which may support its long-term growth as demand for EVs rises.
Tata Motors is also a strong player in the PV segment with a growing EV portfolio. Its early push in electric cars has helped it build a strong base, and continued focus on new models may support volumes in the coming years.
3-Wheeler Segment
Atul Auto is one of the smaller but active players in the three-wheeler space. The company is seeing steady demand from both passenger and cargo segments, and the shift towards EVs may support future growth.
Bajaj Auto is a much larger player in this segment and has a strong presence in both ICE and electric three-wheelers. Its EV push and wide network may help it capture more demand as the shift to electric speeds up.
CV Segment
Olectra Greentech is focused mainly on electric buses and is one of the early movers in the CV EV space. The company has been gaining orders from state transport bodies, which supports its visibility.
JBM Auto is also expanding in electric buses and related EV solutions. Ashok Leyland continues to work on its electric bus and CV plans, with a focus on fleet electrification over the long term.
2-Wheeler Segment
TVS Motor Company has a strong position in scooters and is steadily growing its EV presence with new models. The company is focusing on both domestic and export markets, which supports stable growth.
Ola Electric Mobility and Ather Energy are newer EV-focused players. Both are working on expanding their product range and improving scale as competition in the electric two-wheeler space continues to rise.
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