If you own a Delhi-registered petrol or diesel car that is BS-IV or older, you now have a third option besides keeping it or selling it. Under the Delhi EV Policy 2026, owners who scrap such a car and buy a new electric car can claim an incentive of up to ₹1 lakh. That sounds generous. Whether it beats a sale depends on what your car is still worth and what you plan to drive next. Here is how to work it out.
What the Policy Offers
The Delhi EV Policy 2026 was notified on 1 July 2026 and runs until 31 March 2030, with an outlay of about ₹15,000 crore, according to MeraEV. There is no blanket purchase subsidy for private electric cars. The two benefits that matter to car owners are the scrappage incentive and a full waiver of road tax and registration fees on eligible electric cars.
The road tax waiver applies whether or not you scrap anything. MeraEV estimates it saves roughly ₹1.5 to ₹2 lakh on a ₹20 lakh electric car. The scrappage incentive comes on top of that.
Who Qualifies for the Scrappage Incentive
The incentive is for a Delhi-registered BS-IV or older petrol or diesel car, which broadly means a car registered before April 2020. Cars registered elsewhere in NCR do not qualify, even if the owner now lives in Delhi. The car must be scrapped at a Registered Vehicle Scrapping Facility (RVSF), which issues a Certificate of Deposit (CoD).
You then have six months from the CoD to buy a new electric car with an ex-factory price of up to ₹30 lakh. The names on the old car's RC, the CoD and the new car's invoice must match, and the money is paid by direct benefit transfer to the owner. The draft policy limited the incentive to the first 1,00,000 eligible applicants, so the pool may run out well before 2030.
The incentive is tied to a new electric car. If you plan to replace your old car with a used EV, it does not apply.
Scrap or Sell: Running the Numbers
Start with what your car would fetch. Get two or three offers, from a private buyer, a dealer and an online platform. Our guide to car valuation in Delhi NCR explains how to arrive at a fair figure. Then compare.
If you scrap, you receive the RVSF's scrap value plus up to ₹1 lakh, but only if you buy a new EV within six months. If you sell, you receive the sale price and remain free to buy anything you like, new or used, electric or not.
Take a 2017 BS-IV petrol hatchback as an example. If a buyer offers ₹2.5 lakh, scrapping it for scrap value plus the incentive leaves you worse off. Now take a 2016 diesel SUV registered in Delhi, a few months from its 10-year limit, with weak offers from buyers. Here, scrap value plus ₹1 lakh can beat the market, if you were planning to buy a new EV anyway.
As a rule of thumb, scrapping makes sense when three things are true: the car is a Delhi-registered BS-IV or older, its market value is low, and you are already planning to buy a new electric car within six months. If any one of those is missing, selling usually pays more.
Why Age Rules Tip the Balance for Diesels
Delhi does not allow diesel cars over 10 years old or petrol cars over 15 years old on its roads. Delhi also does not issue PUC certificates to those cars, and with No PUC, No Fuel now enforced, they cannot buy fuel at Delhi stations. A diesel close to its limit loses value fast, because a buyer in Delhi gets little use from it. Our guide to the 10-year diesel and 15-year petrol rule covers the options in detail.
BS-IV diesels face a second squeeze in winter. Under GRAP Stage III, BS-IV diesel four-wheelers cannot ply in Delhi NCR. Our guide to GRAP rules for BS-IV cars explains what that does to value.
A petrol car with years left on its Delhi life is a different case. It usually still has a healthy resale market, and selling it is normally the better choice.
How to Scrap a Car Properly
Use only an RVSF, because only an RVSF can issue a valid CoD. Take the RC, your ID and the car's keys. Ask the facility for a written quote, since scrap value varies with the car's weight and condition. Keep the CoD safe: you will need it to claim the incentive on the Delhi transport department portal, along with the new car's invoice and registration and your bank details.
Before you hand the car over, cancel its insurance, clear any pending fines with a challan check, and make sure any car loan is closed and removed from the RC.
How to Sell Instead
If the numbers favour a sale, clean the car, gather its papers and get offers from more than one buyer. You can sell your car on Hooter, and our guide on selling without getting lowballed covers negotiation. Selling also leaves you free to buy a used electric car; read how to check a used EV's battery and browse used electric cars in Delhi NCR.
A Scrap-or-Sell Checklist
Confirm the car is Delhi-registered and BS-IV or older. Get at least two resale offers and a written RVSF quote. Add scrap value and the incentive, and compare the total with your best offer. Scrap only if you will buy a new EV with an ex-factory price up to ₹30 lakh within six months. Keep the CoD and claim promptly, because the pool is limited.
If you are new to electric cars, start with our guide to buying an EV in Delhi before you decide.
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Frequently Asked Questions
How much is the scrappage incentive under the Delhi EV Policy 2026?
Up to ₹1 lakh, paid by direct benefit transfer, when you scrap a Delhi-registered BS-IV or older car and buy a new electric car.
Does the incentive apply if I buy a used electric car?
No. It is tied to buying a new electric car with an ex-factory price of up to ₹30 lakh within six months of the Certificate of Deposit.
Can I claim it for a car registered in Gurugram or Noida?
No. The scrapped car must be registered in Delhi. Cars registered in other NCR cities do not qualify.
Where do I have to scrap my car to get the incentive?
Only at a Registered Vehicle Scrapping Facility (RVSF), which issues the Certificate of Deposit you need for the claim.
Is selling my old car better than scrapping it?
Usually, if it still has decent resale value. Scrapping pays when the car is worth little and you were already planning to buy a new EV.