Delhi EV Policy 2026: Tata Motors, Mahindra & Ather Among Top Stocks to Watch as ₹15,000 Crore EV Push Begins

The electric vehicle (EV) story in India just received another major boost. The Delhi Cabinet has approved the Delhi EV Policy 2026, formally the Delhi Electric Vehicle Policy 2026-2030, a roadmap that aims to accelerate EV adoption in the national capital over the next four years. While EVs have gained traction for some time, the latest policy makes one thing clear: Delhi wants to speed up the shift from internal combustion engine (ICE) vehicles to electric mobility.

The announcement has once again brought EV manufacturers, auto companies, and component makers into focus. But what exactly does the new policy say, and which companies could benefit if the transition unfolds as planned? Here is the breakdown.

What's New in the Delhi EV Policy 2026?

The policy comes into effect from July 1, 2026, and remains valid until March 31, 2030. It aims to ensure that 30% of Delhi's total vehicle fleet is electrified by March 2030. To support this transition, the Delhi government has proposed an investment of ₹15,000 crore between FY27 and FY30.

The allocation breaks down as follows:

The focus is not just on encouraging people to buy EVs. A large portion of the investment is directed towards building charging infrastructure, long considered one of the biggest hurdles to EV adoption.

A Gradual Shift Away From Petrol and CNG Vehicles

Rather than an immediate ban, the policy follows a phased approach. Some of the biggest changes include:

• From January 1, 2027, only electric three-wheelers will be eligible for new registrations.
• From April 1, 2028, new petrol and CNG-powered two-wheelers will no longer be registered in Delhi.

To encourage buyers, the government has proposed financial incentives:

• Up to ₹30,000 for electric two-wheelers
• Up to ₹50,000 for electric three-wheelers

Electric passenger cars priced up to ₹30 lakh will continue to enjoy exemptions from road tax and registration charges. Together, these measures are expected to improve EV affordability and encourage faster adoption across vehicle categories.

Which Companies Could Be in Focus?

The policy has shifted investor attention towards companies with meaningful exposure to electric vehicles. According to Nomura, the likely beneficiaries include Mahindra & Mahindra, Tata Motors' passenger vehicle business, Ather Energy, and Sona BLW Precision Forgings, given their growing presence in the EV ecosystem.

The policy could also support electric three-wheeler makers such as Bajaj Auto and Mahindra Last Mile Mobility, while electric two-wheeler makers like TVS Motor, Ola Electric and Ather Energy may benefit from rising demand.

Beyond vehicle makers, component suppliers with strong EV exposure, including Sona BLW Precision Forgings, Samvardhana Motherson International, and Uno Minda, have been highlighted as potential beneficiaries if EV production continues to rise.

Investors tracking this theme often watch the broader basket of auto ancillary stocks alongside the carmakers.

But the Market Reaction Wasn't Uniform

Interestingly, the broader auto sector reacted negatively immediately after the announcement. As of 1:55 PM on June 30, 2026, the Nifty Auto index had rebounded and was trading about 0.84% higher. However, the index remained down 5.53% over the past six months, reflecting the challenges faced by the broader automobile sector despite periodic recoveries.

Among individual stocks:

• Eicher Motors fell as much as 6%
• Bharat Forge declined around 5%
• Hero MotoCorp, Bajaj Auto, Uno Minda, Sona BLW Precision Forgings and Samvardhana Motherson International also traded lower

On the other hand, Ather Energy stood out by touching a fresh all-time high of ₹1,139, with the stock gaining over 5% during intraday trade. The company has risen over 54% in calendar year 2026, while the Nifty 50 has declined 8.52% during the same period. (Stock moves as of 1:58 PM on June 30, 2026.)

The contrasting reaction suggests that while investors see long-term opportunities in EV-focused businesses, they remain cautious about how traditional auto manufacturers will navigate the transition.

Implementation Could Still Be the Bigger Challenge

While the policy lays out an ambitious roadmap, execution will ultimately determine its success. One concern highlighted by market participants is Delhi's proximity to Haryana and Uttar Pradesh, which could make implementation harder. Questions also remain around infrastructure readiness and whether enough EV manufacturing capacity will be available as demand rises.

Another notable point is that strong hybrid vehicles have not been offered incentives under the new policy, leaving some uncertainty around how hybrid adoption may evolve.

Why This Policy Matters Beyond Delhi

Although Delhi accounts for only 5% of India's passenger vehicle sales, 3% of two-wheeler sales and 2% of three-wheeler sales in FY26, the significance of this policy goes beyond its market size. Several analysts believe the Delhi EV Policy 2026 could become a template for other large states considering similar transitions. If that happens, the impact could extend well beyond the national capital and shape the broader direction of India's automobile industry.

While companies across the EV value chain are likely to stay in focus, the policy's long-term impact will depend on how effectively it is implemented, how quickly charging infrastructure expands and whether other states follow Delhi's lead. For investors, the announcement reinforces one thing: India's EV transition is no longer just about individual companies — it is increasingly a policy-driven structural theme.

Sources: Delhi Cabinet EV Policy 2026-2030 announcement; Nomura research note; NSE (Nifty Auto and Nifty 50 index data), all as of June 30, 2026. This article is for informational purposes only and is not investment advice.