Ather Energy, TVS Motor, Bajaj Auto, Tata Motors PV shares: Can Delhi’s pollution curbs change game for auto-EV stocks?
Delhi’s air pollution control measures are set to tighten from November 1, with multiple curbs including restrictions on non-BS-VI vehicles. The stricter curbs could boost the EV theme, potentially creating opportunities for auto companies operating in the electric mobility space, such as Ather Energy, TVS Motor Company, Bajaj Auto, and Tata Motors (Passenger Vehicles), according to experts.
Under Delhi’s air pollution measures, there will be restrictions on vehicle use, higher parking charges, and other enforcement steps to reduce emissions across the National Capital Region (NCR). One of the significant curbs is the restriction of vehicles registered outside Delhi that do not meet Bharat Stage VI (BS VI) emission norms.
While these measures aim to curb pollution, could they also fuel a shift in the fortunes of auto and EV stocks? Let’s understand from experts.
The direct push towards EV adoption due to Delhi's measures to curb pollution will be modest, according to Gaurav Garg, Head - Research, Lemonn, who sees conventional commercial vehicles as the near-term winners instead of EV stocks.
“The bigger lever is Delhi EV Policy 2.0. From 1 January 2027, it will allow only electric autos and light goods vehicles to be newly registered in Delhi. Delhi already leads in adoption: EVs were 12.7% of its FY26 registrations, against roughly 8–9% nationally. For stocks, expect sentiment, not earnings,” explained Garg.
Echoing the view that the restrictions are temporary rather than indicative of a permanent ban, Rubina Singla, founder of Equitrust Solutions, highlights that such actions “reinforce the broader regulatory push towards cleaner mobility in the NCR” and may create incremental replacement demand.
“Two-wheelers account for a significantly larger share of personal mobility in Delhi-NCR. Any friction on older ICE two-wheelers (entry restrictions plus higher parking costs for non-EVs) creates a larger addressable replacement pool. The price point and daily-use nature of two-wheelers make the switch to electric relatively easier and faster for consumers compared to passenger vehicles,” explained Singla.
Auto-EV stocks in focus due to air pollution
Bajaj Auto, through its Chetak EV portfolio, is well-positioned to capture the replacement demand in the electric scooter segment. Ather Energy and TVS Motor have strong and growing electric two-wheeler franchises.
Tata Motors (Passenger Vehicles) and Mahindra & Mahindra may benefit from their EV portfolios in the adoption of electric passenger vehicles.
“These two remain the strongest pure-play EV passenger vehicle players in India. While the immediate impact of the non-BS-VI entry curb is more pronounced for two-wheelers, any acceleration in the shift away from older ICE cars in Delhi-NCR will favour Tata and Mahindra given their existing EV product pipelines and market share in the electric car segment,” explains Singla.
Commercial vehicle makers more likely to benefit
The e-two-wheeler market in Delhi-NCR is still growing. Delhi accounts for around 8% of the national volume of e-cars and e-goods carriers.
Delhi Transport Corporation (DTC) runs India’s largest electric fleet, with over 4,000 buses and about 3,300 more planned, Garg highlighted, to reaffirm that companies manufacturing electric buses, e-autos, electric small commercial vehicles (e-SVs) and electric cars are likely to be more sensitive to these curbs.