What does 11.58% EV adoption mean for Delhi’s future? A proposed carbon credit policy aims to boost clean mobility and reward eco-conscious vehicle owners.
Delhi is stepping up its efforts to decarbonise urban transport, with electric vehicle (EV) adoption steadily rising between FY2023 and FY2025. Data from JMK Research and the Vahan Dashboard highlights that EV sales in the national capital surged from 67,108 units in FY2023 to 83,493 in FY2025—a 24.4 per cent increase over the period. internal combustion engine (ICE) vehicles also saw growth, albeit at a slower pace of 11.7 per cent.
While EV penetration in Delhi hit 11.79 per cent in FY2024, it slightly dipped to 11.58 per cent in FY2025 despite higher unit sales. This reflects that ICE vehicle growth outpaced EVs in percentage terms. “The marginal dip in FY2025 could be attributed to evolving consumer preferences or anticipation around the new EV policy,” said the JMK Research analysis.
To counter this trend and further incentivise adoption, Delhi’s Draft EV Policy 2.0 proposes a first-of-its-kind carbon credit system for EV buyers. The policy will reward owners based on CO₂ (carbon dioxide) emissions avoided by replacing ICE vehicles with EVs.
According to government estimates, a typical EV can save between 0.5 to 2 tonnes of CO₂ annually. With India’s carbon credit prices ranging from ₹100 to ₹800 per tonne, annual incentives could amount to ₹200 to ₹1600 per vehicle.
This approach could be particularly lucrative for high-mileage fleet operators. “Fleets in logistics and ride-hailing sectors can monetise significantly more carbon credits due to their high annual usage,” the policy draft notes.
Delhi’s original 2020 EV Policy laid the groundwork by offering financial incentives, scrappage benefits, and infrastructure support. The proposed carbon credit mechanism adds a market-based climate solution to the mix, potentially boosting private and commercial EV adoption.
However, challenges remain. Effective implementation requires a robust Measurement, Reporting and Verification (MRV) system to track emissions and ensure transparency accurately.
“Awareness among consumers and businesses is still low. Without targeted outreach and streamlined governance, the carbon credit system may not realise its full potential,” said an EV policy expert.
Still, the initiative marks a bold shift towards aligning clean mobility with carbon markets. If successfully rolled out, Delhi’s policy could set a benchmark for other Indian states aiming to combine sustainability with economic incentives.
