Ola Electric, Ather Energy Surge Up to 11% on Delhi EV Policy

Shares of Ola Electric and Ather Energy surged as much as 11% in Mumbai trading Tuesday after the Delhi government approved a new electric-vehicle policy that cuts registration fees and road tax for two-wheelers and cars. The policy, effective immediately, waives registration fees entirely for EVs and reduces road tax to zero for the first two years, state officials said.

Ola Electric closed at ₹124.70, up 9.8%, after hitting an intraday high of ₹127.30. Ather Energy ended at ₹415.20, up 10.2%. The broader market edged higher; the Nifty Auto index gained 0.6%.

The Delhi policy applies to all new EV purchases registered in the national capital territory. It replaces an earlier subsidy program that expired in March. The new framework aims to push EV adoption toward 25% of new vehicle registrations by 2027, up from roughly 8% in 2024.

For Ola Electric, which sells the S1 Pro scooter at an ex-showroom price of ₹1.25 lakh, the tax waiver cuts the on-road cost by about ₹12,000. Ather Energy's 450X, priced at ₹1.32 lakh, sees a similar reduction of roughly ₹15,000. The savings come on top of existing central government FAME II subsidies, which remain in place through September.

Traders said the policy removes a key price disadvantage for EVs against petrol two-wheelers. The registration fee in Delhi had been ₹3,500 for scooters and ₹5,000 for motorcycles; the road tax added another 8-12%. The combination of fee waiver and zero road tax for two years brings the total cost of ownership closer to parity with internal-combustion models, several dealers said.

The policy does not include direct purchase subsidies. The earlier Delhi EV policy offered up to ₹30,000 per vehicle. The current framework relies entirely on tax relief, which costs the state roughly ₹200 crore annually in foregone revenue, according to a transport department estimate cited in the policy document.