Delhi has notified an electric vehicle policy that will prohibit the registration of new petrol-powered two-wheelers from April 2028 and limit autorickshaws and small goods carriers to electric models from January 2027. The policy, effective 1 July 2026, targets a minimum 30 per cent electrification of the city’s vehicle fleet by 2030—a regulatory shift that directly alters the purchasing decisions of millions of residents in one of the world’s most polluted capitals.

The move combines mandates with subsidies: buyers of electric two-wheelers receive Rs 30,000, plus Rs 10,000 for scrapping an old vehicle, alongside waived road tax and registration fees. The government aims to install 32,000 public charging points, up from 9,000, with the state transmission utility as the nodal agency. This dual push of incentives and deadlines addresses the 46 per cent of Delhi’s local pollution attributed to two- and three-wheelers, according to the city’s energy and resources institute.

Viewed from Delhi, the EV policy slots into a broader urban overhaul. The Delhi Development Authority has outlined a 1,400 sq km development plan encompassing transit-oriented zoning, slum rehabilitation, and riverfront renewal—all intended to accommodate growth while curbing encroachments and heat islands. Separately, a slum rehabilitation policy extends eligibility to families living in JJ clusters established up to 2025, aiming to provide formal housing for some 20 lakh people. Meanwhile, private operators such as Indonesia’s Jasa Marga are embedding technology into toll-road networks, using AI and command centres to improve safety and service for 3.5 million daily vehicles, signaling how infrastructure providers are responding to rising mobility demands.

In Jakarta, the policy direction mirrors Delhi’s but relies on fiscal incentives: electric vehicles enjoy a 0 per cent vehicle tax rate, which officials frame as both an efficiency gain and a way to trim fuel imports. However, Indonesian policy circles remain divided, with some pushing higher biodiesel blends. A prominent clean-fuel coalition argues that vehicle electrification, not B50 biodiesel, is the more sustainable long-term path to energy security and lower transport emissions. At the national level, India is simultaneously drafting cybersecurity mandates for smart vehicles, requiring compliance for new models with Level-3 automation from October, and for over-the-air update-capable vehicles by 2028—preparing for an era in which cars are increasingly software-defined.

The immediate milestones to watch are Delhi’s January 2027 registration cutoff for three-wheelers and the rollout of its charging network, while the effectiveness of Jakarta’s tax incentives in shifting consumer behaviour will be tested. Both cities’ experiments with mandates and incentives will likely shape how other large Asian cities approach the electrification of their transport sectors.