India’s transition to clean mobility has reached a decisive moment. Within the span of a week, two critical policy developments unfolded. The Government of Delhi released its draft EV Policy 2.0 for public consultation, and the Bureau of Energy Efficiency (BEE) circulated a revised draft of the CAFE-3 norms to industry stakeholders. Each of these is significant. The next few months will determine whether India can move from incremental progress to large-scale transformation.

Delhi has once again set the pace. Historically, the capital has often incubated urban transport innovation. Its early adoption of metro rail created a template for the country. Its transition to modern bus systems reshaped public transport expectations. In electric mobility, Delhi’s first EV policy in 2020 became a benchmark for other states. The new draft builds on that legacy, but more importantly, it marks a shift in approach.

The most important element of the policy is the proposed phase-out of internal combustion engine vehicles in key segments. The plan to stop new registrations of ICE three-wheelers from January 2027 and two-wheelers from April 2027 is an ambitious and strategic intervention as the segment constitutes almost three-fourths of motor vehicle sales in Delhi. It moves beyond incentives and establishes a clear regulatory direction. This distinction is critical.

India’s EV journey so far has relied heavily on subsidies. While these have played an important role in market creation, they have not delivered scale on their own. What drives sustained adoption is certainty. When the industry knows that a transition is inevitable, it invests accordingly in manufacturing, supply chains, and innovation. Consumers, in turn, respond to falling costs........

© Indian Express