Ather Energy shares rally 8% while Eicher Motors, Hero MotoCorp shares drop up to 4%. Here’s why

The shares of EV scooter-maker Ather Energy rallied 8% on Monday, despite overall market weakness, while Royal Enfield-maker Eicher Motors and other stocks tumbled up to 4% after the new Delhi EV policy proposed to ban registration of petrol two-wheelers in the national capital from April 2028 onwards.

The draft Delhi Electric Vehicle (EV) Policy 2026-2030 released on Saturday mandates that only electric two-wheelers can be registered from FY29 onwards, in order to accelerate EV adoption and reduce pollution in the national capital. “Through tax exemptions, incentives and expanded charging infrastructure, we want to accelerate EV adoption and build a sustainable transport system,” said state transport minister Pankaj Kumar Singh.

What does the draft Delhi EV policy propose?

People buying electric two-wheelers in Delhi may get a subsidy of up to Rs 30,000 in the first year from the date of notification of the policy, under the draft EV Policy 2026. For electric auto-rickshaws, the policy proposes a fixed incentive starting at Rs 50,000 in the first year.According to the draft policy, eligible two-wheeler buyers will get incentive worth Rs 10,000 per kWh, capped at Rs 30,000 in the first year, Rs 6,600 per kWh cumulating up to Rs 20,000 in the second year, and Rs 3,300 per kWh totalling up to Rs 10,000 in the third year. The ex-factory price of the vehicle must not exceed Rs 2.25 lakh to qualify.

The incentives will be disbursed through direct benefit transfer to individuals, firms and companies, provided they are residents of Delhi and the vehicle is registered in the national capital. Eligible buyers will have to apply for the subsidy through a mechanism to be notified by the Transport Department, GNCTD.
The policy also proposes exemption from road tax and registration fees for most electric vehicles registered in Delhi during the policy period, though electric cars priced above Rs 30 lakh will not be eligible for this benefit.

What’s driving uptrend in EV stocks?

Overall, the measures in the draft EV policy make purchase of EV two-wheelers much more attractive, boosting the EV scooter-maker stocks and dampening sentiment for the legacy bike-makers.

Ather Energy shares rallied more than 8% to hit a fresh 52-week high of Rs 936 apiece on Monday. However, share of peer Ola Electric tumbled after a massive surge seen earlier, while the share price of JBM Auto, which makes EV charging infrastructure and more, jumped more than 5%. Electric bus-maker Olectra Greentech shares meanwhile surged over 4%. This came even as the broader markets plunged on renewed worries over escalating Iran-US war after Pakistan brokered-ceasefire talks between the two countries failed during the weekend.

Eicher Motors, known for its legacy ‘Royal Enfield‘ brand of bikes, saw its share price tumble 4% to emerge as the top loser on the Nifty Auto index. Hero MotoCorp and TVS Motor Company shares declined more than 3% each.

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