News, 8 January 2026
The Delhi government is considering a bold new proposal under its upcoming EV Policy 2.0 to offer financial incentives for owners of ageing petrol and diesel vehicles who choose to convert them into electric vehicles (EVs) instead of sending them for scrappage or selling them outside the capital. According to multiple reports from leading news sites, officials in the Transport Department have suggested granting a subsidy of up to ₹50,000 for the first 1,000 vehicles that undergo electric retrofitting a move designed to reduce air pollution in the city while accelerating the transition to cleaner mobility.
Retrofitting typically involves removing the internal combustion engine and replacing it with an electric motor and battery system, turning an old petrol or diesel car into a fully electric one. While this concept has been discussed before, high conversion costs have limited widespread adoption; the proposed subsidy aims to help bridge that gap and make retrofitting a more viable option for car owners. This initiative is part of a larger effort by the capital to reduce vehicular emissions a major contributor to Delhi’s lingering air quality challenges.
Transport officials note that this incentive could particularly benefit owners of premium or luxury vehicles, where resale value is often low and scrappage yields minimal returns. By offering a financial boost for conversion, Delhi hopes to encourage more residents to retain and upgrade their existing vehicles in an environmentally friendly way rather than discard them. The proposal will require approval from the Delhi Cabinet before it can be implemented, and if adopted, would mark one of the first formal retrofitting subsidies for four-wheelers in India’s major cities.
Compiled using AI
