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Morgan Stanley warns Delhi EV Policy 2026 could strain automakers if other states follow

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Delhi's EV Policy 2026 plans to phase out petrol and CNG two-wheelers by April 2028 and mandate electric three-wheelers from 2027. The policy backs its targets with Rs 70 billion in direct consumer incentives and a plan to deploy over 30,000 charging points across the city. However, a Morgan Stanley report has flagged that if other states replicate the policy, it could pose a significant challenge for the automotive industry. The pressure would be felt most acutely in the two-wheeler segment, which remains a dominant category for major automakers.

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