Delhi New EV Policy: The Delhi government’s approval of the ‘EV Policy 2026-30’, set to come into effect from July 1, has once again brought the electric vehicle (EV) sector into sharp focus. The policy adds further momentum to the already strong and steadily rising demand for EVs in India, reinforcing the sector’s long-term growth outlook.
Brokerage firm Nomura believes EV penetration in India is at an “inflection point” and views the new policy as a structural shift from incentive-led to mandate-led EV adoption.
Policy roadmap for electrification
Under the new framework, Delhi has laid out a clear roadmap toward full electrification of new vehicle registrations. From January 1, 2027, only electric auto-rickshaws and N1 category small goods carriers will be eligible for new registrations in the capital.
The policy will tighten further from April 1, 2028, when only electric two-wheelers will be allowed for fresh registration, effectively phasing out petrol and CNG variants in these segments.
The government has also set a target of achieving a 95 per cent electric share in new vehicle registrations by 2027. This marks a sharp push toward electrification after the earlier goal of achieving 25 per cent EV penetration in new registrations by 2024 was missed.
Delhi’s new EV policy is expected to further boost the already flourishing demand for electric vehicles, which Nomura believes remains very strong compared with pre-war levels.
Impact on city gas distribution stocks
With rising EV adoption and the implementation of the new policy, city gas distribution (CGD) companies are likely to face implications from the shift toward electrification. Here’s a look at the gas stocks that could be impacted:
Indraprastha Gas (IGL) to see impact
According to Nomura, the policy is structurally negative for Indraprastha Gas, primarily due to the potential slowdown in Delhi’s auto-CNG volume growth.
While CNG two- and three-wheelers are likely to have a limited impact, slower adoption of CNG cars and taxis could weigh on volumes from FY27 onwards. However, near-term earnings remain resilient, supported by growth in the PNG domestic and industrial/commercial segments.
The brokerage has maintained a ‘Buy’ rating on the stock for the short term.
Mahanagar Gas faces no immediate impact
According to Nomura, Mahanagar Gas faces no immediate impact as its operations are concentrated in Maharashtra.
While a similar policy could pose long-term risks if adopted by the state, Nomura sees lower near- to medium-term EV policy risk. The brokerage prefers MGL among city gas distribution stocks due to its stronger volume growth outlook and favourable operating environment, while maintaining a ‘Buy’ rating on the stock.
Gujarat Gas to see the least impact among CGD stocks
Nomura has also maintained a ‘Buy’ rating on Gujarat Gas. The brokerage believes the company would be the least affected among CGD peers by a similar policy, as its volumes are primarily driven by industrial and commercial PNG, with limited exposure to auto-CNG.
| Stock Name | Rating | Note |
| Indraprastha Gas | BUY | To see the most impact |
| Mahanagar Gas | BUY | No immediate impact |
| Gujarat Gas | BUY | least affected among CGD peers |
Stocks to watch from rising EV penetration
In another report, Nomura said that rising EV adoption in India could directly benefit several companies, including automakers and auto-related businesses.
Here’s a look at the stocks that could gain from increasing EV penetration:
Mahindra & Mahindra Share Price Target 2026
The brokerage has maintained a ‘Buy’ rating on Mahindra & Mahindra (M&M) with a target price of Rs 4,580, implying an upside potential of around 44 per cent. M&M is one of India’s leading automotive and farm equipment manufacturers, with a strong presence in SUVs, tractors and the fast-growing electric vehicle segment.
Hyundai Motor Share Price Target 2026
The brokerage has retained a ‘Buy’ rating on Hyundai Motor India and set a target price of Rs 2,407, indicating a potential upside of about 22 per cent. Hyundai Motor India is the country’s second-largest passenger vehicle manufacturer.
Ather Energy Share Price Target 2026
The brokerage has maintained a ‘Buy’ recommendation on Ather Energy with a target price of Rs 1,120, suggesting an upside potential of nearly 12 per cent. Ather Energy is a leading Indian electric two-wheeler manufacturer focused on premium electric scooters and EV charging infrastructure.
Sona BLW Precision Forgings Share Price Target 2026
The brokerage has reiterated a ‘Buy’ rating on Sona BLW Precision Forgings (Sona Comstar) with a target price of Rs 720, implying an upside potential of around 16 per cent. Sona Comstar is a leading auto components manufacturer that supplies differential gears, motors and driveline systems to both conventional and electric vehicle makers globally.
Uno Minda Share Price Target 2026
The brokerage has maintained a ‘Buy’ recommendation on Uno Minda and assigned a target price of Rs 1,494, indicating a potential upside of about 31 per cent. Uno Minda is one of India’s largest automotive component manufacturers, producing lighting systems, switches, alloy wheels and other advanced auto technologies for major vehicle makers.
| Company | Target Price | Rating | Upside% |
| Mahindra & Mahindra | Rs 4,580 | BUY | 44% |
| Hyundai Motor | Rs 1,969 | BUY | 22% |
| Ather Energy | Rs 999 | BUY | 12% |
| Sona BLW Precision Forgings | Rs 619 | BUY | 16% |
| Uno Minda | Rs 1,137 | BUY | 31% |
Bottom Line
A sharp policy push towards electrification is set to accelerate India’s EV adoption story, creating long-term opportunities for EV-focused automakers and component makers while posing structural challenges for city gas distribution companies with high exposure to auto-CNG demand.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
