Delhi EV policy boost: Ather Energy hits record high after four-day rally; Ola Electric gains 13% in two sessions
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Shares of electric two-wheeler makers Ather Energy and Ola Electric Mobility extended their rally on Wednesday as investors remained optimistic about the sector's long-term growth prospects. Sentiment was boosted after the Delhi government approved a new electric vehicle (EV) policy, effective from July 1, aimed at accelerating the transition away from internal combustion engine (ICE) vehicles.
Continuing its winning streak for the fourth straight session, Ather Energy shares climbed as much as 3.2% to a record high of ₹1,177.25 on the BSE during early trade. The electric two-wheeler maker’s shares have surged more than 19% over the past four trading sessions since the Delto accelerated the policy.
Ola Electric Mobility also extended its gains, rising as much as 4.7% to ₹45.87 on the BSE on Wednesday. The stock has gained around 13% over the past two trading sessions following the policy announcement, taking the company's market capitalisation to about ₹21,003 crore.
Among other two-wheeler manufacturers, Hero MotoCorp, Bajaj Auto and TVS Motor Company gained around 1% each.
Other auto stocks join rally
The positive sentiment spread across the automobile sector, with the Nifty Auto index rising more than 1%, outperforming the benchmark Nifty 50, which was up about 0.5%.
Among the sector's heavyweights, Mahindra & Mahindra advanced nearly 3%, Maruti Suzuki gained over 1.5%, and Ashok Leyland rose more than 2%. Eicher Motors also traded higher, while Tata Motors was the only major auto stock in the red.
The rally follows the Delhi Cabinet's approval of the EV Policy 2.0 earlier this week. Effective from July 1, the policy includes one of the country's most ambitious electrification roadmaps. Under the policy, registration of new petrol, diesel and CNG-powered two-wheelers will be discontinued from April 1, 2028, after which only electric two-wheelers will be eligible for registration in the national capital.
Chief Minister Rekha Gupta said the policy will be supported by an investment of ₹15,000 crore over the next four years to accelerate Delhi's transition to cleaner mobility.
To drive faster adoption, the government will offer a subsidy of ₹30,000 to buyers of electric two-wheelers and ₹50,000 to purchasers of electric three-wheelers during the first year of the policy. Owners of Bharat Stage-IV (BS-IV) four-wheelers will also be eligible for a scrappage incentive of ₹1 lakh, encouraging the replacement of older, more polluting vehicles.
Industry experts believe the policy could provide a structural demand boost for electric two-wheeler manufacturers by accelerating EV adoption in one of India's largest automobile markets. They also expect the move to prompt other states to introduce similar measures, strengthening the long-term growth outlook for the country's EV ecosystem.
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