Delhi EV Policy: Ather Surges 8%, Eicher Drops 4%
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- Delhi's draft EV Policy 2026-2030 mandates that only electric two-wheelers can be registered in the national capital from FY29 onwards, with eligible buyers receiving Rs 10,000 per kWh capped at Rs 30,000 in year one, stepping down to Rs 20,000 in year two and Rs 10,000 in year three.
- Electric two-wheelers with ex-factory prices above Rs 2.25 lakh will not qualify for the subsidy, and the policy also proposes a fixed Rs 50,000 incentive for electric auto-rickshaws in the first year plus road tax and registration fee exemptions for most EVs registered in Delhi.
- Ather Energy shares rallied more than 8% to a fresh 52-week high of Rs 936 on Monday, while Ola Electric tumbled after a prior surge, JBM Auto jumped more than 5%, and electric bus-maker Olectra Greentech surged over 4%.
- Eicher Motors, the maker of legacy Royal Enfield bikes, fell 4% to emerge as the top loser on the Nifty Auto index, with Hero MotoCorp and TVS Motor Company each declining more than 3%.
- State transport minister Pankaj Kumar Singh said tax exemptions, incentives and expanded charging infrastructure are intended to accelerate EV adoption and build a sustainable transport system, with the Transport Department to notify the subsidy application mechanism.
- The EV stock moves bucked a broader market selloff, as wider Indian indices plunged on renewed concerns over an escalating Iran-US conflict after Pakistan-brokered ceasefire talks failed over the weekend.
Why it matters: The FY29 hard deadline for electric-only two-wheeler registration in Delhi is a structural mandate, not a soft target—ICE two-wheeler makers selling into the national capital face an existential timeline. Markets repriced that risk within hours: Ather's 8% rally to a 52-week high vs. Eicher, Hero, and TVS each sliding 3-4% quantifies how much of Delhi's two-wheeler demand investors now expect to migrate to EVs by FY29.
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