Delhi Government to Offer Subsidy for Converting Old Cars into EVs; Here’s the Cost

Good news for Delhi residents planning to buy electric vehicles (EVs): the Delhi government is considering a subsidy scheme for converting old cars into EVs under its upcoming EV Policy 2.0. The initiative aims to promote electric mobility while providing financial relief to the middle class.

Under the proposal, diesel cars older than 10 years and petrol cars older than 15 years can be retrofitted into electric vehicles. Owners could receive incentives of over ₹50,000. Since retrofitting currently costs between ₹2–3 lakh, the government plans to provide subsidies for the first 1,000 vehicles. Investments in R&D could further reduce the cost, making it viable to upgrade old cars rather than scrap them.

To encourage EV adoption, the government may also provide up to 5% subsidy on e-vehicle loans, addressing the high cost of EVs and expensive auto loans. The focus will be on EVs priced under ₹25 lakh, with subsidies capped at ₹1.5 lakh for the first 25,000 vehicles, ensuring benefits reach those who need them most.

Two-wheelers are also included in the plan, with subsidies of up to ₹30,000 proposed for 1 lakh vehicles. Transport Minister Pankaj Singh recently discussed these proposals with stakeholders, and the Chief Minister is expected to review EV Policy 2.0 next week.