Here’s Why Delhi Govt Has Stopped Offering Subsidies on Electric Cars

According to transport minister Kailash Gahlot, Delhi has no plans to prolong subsidies on the purchase of electric cars because the AAP government’s drive for electric four-wheelers has garnered the necessary traction. The Delhi government has now decided to discontinue the extra subsidy of Rs 1.5 lakh granted on electric passenger cars.

As part of the Delhi EV policy, which was implemented in August 2020, an extra subsidy of Rs 1.5 lakh was granted to the first 1,000 electric vehicle buyers in India’s national capital. The milestone of 1,000 new electric car sales has been reached, and as a result, the Delhi government has decided to discontinue the aforementioned electric car subsidies.

Aside from the additional subsidy of Rs 1.5 lakh, the Delhi EV policy also offered a waiver of road tax and registration fees for electric vehicles, which will most probably be extended to new electric vehicles. The programme was initially intended to remain in effect for three years. Therefore, the reduction in road tax and registration fees will be in effect at least until August 2023. 

Instead of passenger automobiles, the Delhi government has shifted its focus to the promotion of electric two-wheelers and three-wheelers, which are still in their initial stage due to the absence of recognised manufacturers. The Delhi government will continue to provide financial subsidies for electric two-wheelers and three-wheelers, which will help two-wheeler commuters, auto drivers, delivery partners, and fleet owners of commercial vehicles.

Gahlot also stated that the Delhi government will focus on providing subsidies to buyers of electric 2-wheelers and electric auto-rickshaws, among others, because “a subsidy is not required for e-cars as such because those who can afford to pay around Rs. 15 lakhs for a vehicle do not care if the cost is Rs. 1-2 lakhs more, sans the subsidy.”