Schools have been closed as the city chokes under the smog, which at a three-year high is nine times the recommended maximum.
How much of an impact will the scheme have?
It is thought some 1.2 million vehicles will remain stationary on a daily basis under the new scheme.
Authorities have said it will run for two weeks, from Monday.
India ranks fourth as the world's largest polluter and for CO2 emissions, trailing behind only the United States of America and China.
Industrial output and burning of crops in neighbouring regions adds to the smog in New Delhi.
Fireworks let off in the days and weeks surrounding Diwali celebrations are also a large contributor.
Until those issues are tackled, its unlikely there will be significant change in India's pollution predicament.
Vehicle and industrial emissions, pollutants from firecrackers and construction dust sharply increase each winter, exacerbating what is already a public health crisis.
Last year, the New Delhi government ordered firefighters to sprinkle water from high-rise buildings to settle dust, banned rubbish fires and ordered builders to cover construction sites to stop dust enveloping the area as hazardous air quality affected millions of people.
Last year, the World Health Organisation crowned India with the unenviable moniker of having the world's 10 most polluted cities.