Delhi EV Policy Boosts Ather 8% In Intraday; Eicher, Hero, TVS Fall Up To 4%

Shares of Ather Energy jumped 8% in early trade on Monday, defying a weak broader market, after Delhi’s Draft Electric Vehicle (EV) policy 2026-2030 proposed phasing out petrol two-wheeler registrations from April 2028.

In contrast, legacy automakers saw selling pressure. Eicher Motors fell 4%, while Hero MotoCorp and TVS Motor Company dropped over 3% each.

At 1:59 pm, Ather Energy Ltd shares were up by 7.57%, while Eicher Motors shares were down 4.77% on the National Stock Exchange (NSE). Hero MotoCorp and TVS Motor Company shares were down by 4.48% and 2.65%, respectively.

Key Provisions Of Delhi EV Policy 2026-2030

The draft Delhi Electric Vehicle (EV) Policy 2026–2030, released on Saturday, mandates that only electric two-wheelers can be registered from FY29. The move aims to speed up EV adoption and cut pollution in the capital.

State transport minister Pankaj Kumar Singh said the policy focuses on tax breaks, incentives, and charging infrastructure to support a shift to cleaner mobility. The draft policy outlines a tiered incentive structure for electric two-wheelers:

• Year 1: ₹10,000 per kilowatt-hour (kWh), capped at ₹30,000

• Year 2: ₹6,600 per kWh, capped at ₹20,000

• Year 3: ₹3,300 per kWh, capped at ₹10,000

The subsidy will apply only to vehicles priced below ₹2.25 lakh (ex-factory). Buyers must be Delhi residents, and the vehicle must be registered in the capital. For electric auto-rickshaws, the policy proposes a fixed incentive starting at ₹50,000 in the first year.

The government plans to disburse incentives through direct benefit transfer. Buyers will need to apply via a system to be notified by the Transport Department. The policy also proposes exemption from road tax and registration fees for most EVs. However, electric cars priced above ₹30 lakh will not qualify for these benefits.

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Shift In Industry Outlook

The proposed ban on petrol two-wheeler registrations marks a clear policy push toward electrification in one of India’s largest urban markets. The draft has tilted near-term sentiment in favour of EV makers, while raising concerns for companies with large exposure to internal combustion engine motorcycles.

Sources:

The Economic Times

NDTV