The policy mandates that only electric two-wheelers will be registered from FY29 onwards, aiming to accelerate EV adoption and reduce pollution. The proposal has strengthened sentiment for electric vehicle manufacturers, particularly in the two-wheeler segment.

The draft policy also outlines financial incentives to boost adoption. Buyers of electric two-wheelers may receive subsidies of up to Rs 30,000 in the first year, with incentives linked to battery capacity over a three-year period. Additional benefits include exemption from road tax and registration fees for most EVs.

The draft policy is open for public feedback for 30 days, after which the final version will be issued incorporating stakeholder inputs.

The measures are expected to make electric two-wheelers more affordable and attractive, supporting demand growth for companies like Ather Energy. The policy also focuses on expanding charging infrastructure and promoting a sustainable mobility ecosystem in the capital.

Ather Energy is one of India’s leading electric two-wheeler manufacturers.

On a standalone basis, the company reported a net loss of Rs 84.60 crore in Q3 December 2025, narrowing sharply from a loss of Rs 197.80 crore in Q3 December 2024 and lower than the Rs 154.10 crore loss in Q2 September 2025.

Net sales jumped 50.20% year-on-year and 6.09% quarter-on-quarter to Rs 953.60 crore in December 2025 quarter.