Ather Energy jumps 8% as Delhi eyes petrol ban 2028

Market snapshot: EV stocks outperform on policy cues

Ather Energy shares rose as much as 8% intraday on Monday, even as broader market sentiment stayed weak. The move followed Delhi’s Draft Electric Vehicle (EV) Policy 2026-2030, which proposes phasing out new petrol two-wheeler registrations from April 2028. The policy signal triggered an immediate rotation into EV and green mobility counters, with Ather Energy emerging as the clear session leader.

Legacy two-wheeler and motorcycle-focused manufacturers traded lower on the same day. Eicher Motors fell up to 4%, while Hero MotoCorp and TVS Motor Company declined by over 3% each in early moves. By 1:59 pm on the National Stock Exchange (NSE), Ather Energy Ltd was up 7.57%, while Eicher Motors was down 4.77%. Hero MotoCorp and TVS Motor Company were down 4.48% and 2.65%, respectively.

What Delhi’s Draft EV Policy 2026-2030 proposes

Delhi’s draft EV policy, released on Saturday, lays out a clear transition timeline for the capital’s vehicle market. A key proposal is that only electric two-wheelers can be registered from FY29, and that the phase-out of petrol two-wheeler registrations begins from April 2028. The policy direction is being read as a push for faster electrification in one of India’s largest urban mobility markets.

The draft also includes fiscal incentives and non-fiscal benefits aimed at improving affordability and adoption. Among the proposed steps are exemptions from road tax and registration fees for most electric vehicles. Incentives, where applicable, are expected to be routed through direct benefit transfer (DBT), which can reduce delays in receipt for buyers.

Key dates: two-wheelers in 2028, three-wheelers in 2027

Reports and policy references in the market commentary pointed to multiple phase-out timelines. Beyond two-wheelers, the draft was also described as mandating electric three-wheelers from 2027. A separate market summary noted that from January 1, 2027, only electric three-wheelers would be permitted for new registrations in Delhi.

For two-wheelers, the timeline most often cited by traders and reports was April 1, 2028. From that date, new petrol and CNG two-wheelers would not be eligible for registration in Delhi, if the draft becomes final policy. The combination of a defined cutoff date and near-term incentives kept EV-focused names in focus through the session.

Subsidies for electric two-wheelers: tiered incentives over 3 years

The draft policy outlines a tiered incentive structure for electric two-wheelers, linked to battery capacity. In the first year, incentives are proposed at ₹10,000 per kilowatt-hour (kWh), capped at ₹30,000. In the second year, the incentive drops to ₹6,600 per kWh, capped at ₹20,000. In the third year, it reduces further to ₹3,300 per kWh, capped at ₹10,000.

The subsidy is proposed to apply only to vehicles priced below ₹2.25 lakh (ex-factory). Eligibility conditions include the buyer being a Delhi resident and the vehicle being registered in the capital. These conditions are designed to target local adoption rather than out-of-state registrations.

Incentives for other segments and tax benefits

For electric auto-rickshaws, the policy proposes a fixed incentive starting at ₹50,000 in the first year. The broader framework also proposes exemptions from road tax and registration fees for most EVs, which can reduce the effective on-road cost.

Market commentary also referenced potential tax-related signals for hybrid vehicles, stating that hybrids may get reduced tax benefits. Separately, reports suggested a possible phase-out of new CNG three-wheelers from 2027 in Delhi, aligning with the broader push toward electric mobility across high-usage urban segments.

Stock moves: Ather gains, legacy manufacturers fall

The immediate trading pattern on Monday was a sector rotation rather than a broad risk-on session. Ather Energy was repeatedly cited as the day’s standout gainer, rising roughly 5% to 8% across multiple snapshots of the session. One report noted Ather Energy rising over 5% to ₹906.80, and another cited a move to ₹908.15, up 5.18%.

At the same time, the stocks of companies with large exposure to internal combustion engine (ICE) motorcycles faced pressure. Eicher Motors, Hero MotoCorp, and TVS Motor Company were down in a range of roughly 3% to 5% during the day as investors digested the implications of a potential registration ban in a large metro market.

Two overlapping triggers: Delhi policy and national EV messaging

The EV theme also received support from broader policy messaging during the session. EV and green mobility stocks ended higher on Monday after Prime Minister Narendra Modi urged citizens to cut fuel consumption and increase the use of electric vehicles. That messaging, along with Delhi’s draft policy, helped keep attention on EV-linked names even as the wider market mood appeared cautious.

Other EV-linked counters mentioned as gaining included JBM Auto and Olectra Greentech. A market snapshot cited Ather Energy, JBM Auto, and Olectra Greentech rising 5.2%, 1.9%, and 2.5%, respectively, and another set of prices placed JBM Auto at ₹626.85 and Olectra Greentech at ₹1,218.85 during the day.

What broker commentary highlighted

ICICI Direct, in a report cited by The Informist, described the proposed framework as more comprehensive and a possible long-term demand driver for EV manufacturers. The note referenced demand drivers across segments and also pointed to the role of incentives in supporting adoption. The report also highlighted that incentives for cars below ₹30 lakh may boost mass adoption, while compulsory electrification across key segments could create a large replacement cycle.

While the market response on Monday was immediate, the policy itself remains in draft form. The draft is open for public feedback for 30 days, after which the final version is expected to be issued incorporating stakeholder inputs.

Policy and market data table

Why the policy matters for Ather and the two-wheeler segment

Ather Energy operates in the electric scooter segment, which is directly addressed by the proposed registration shift in Delhi. A timeline that restricts new petrol two-wheeler registrations from April 2028, combined with front-loaded incentives capped at ₹30,000 in the first year, is being viewed by the market as supportive for near-term demand sentiment in urban EV scooters.

Separately, Ather’s stock has also been supported by heightened trading activity. One report noted trade volumes surging over 12 million shares during the Monday session, indicating elevated interest. Another data point highlighted that since listing in May 2025, Ather Energy shares have delivered more than 212% returns as of the date referenced, and more than 27% year-to-date (YTD) returns in 2026.

Conclusion

Ather Energy’s sharp rise and the parallel decline in legacy two-wheeler names underscored how quickly markets reprice policy risk and opportunity in the auto sector. The Delhi Draft EV Policy 2026-2030 proposes clear timelines for electric-only registrations in key segments, alongside subsidies and tax-related benefits that could lower adoption barriers. The next immediate milestone is the 30-day public feedback window, after which Delhi is expected to issue a final policy incorporating stakeholder inputs.