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Why Has Delhi Government Withdrawn Subsidy On Electric Cars?

The Delhi government has recently withdrawn the subsidy they have been providing to the EV owners since 2020. With the rising fuel prices and environmental concerns, there has been a rise in EVs on the road. However, the subsidy scheme was just for the first 1,000 EVs in the state.

Mahindra Launches MESMA 48 platform for light Electric Vehicle
Mahindra Launches MESMA 48 platform for light Electric Vehicle

The motive of the subsidy was to promote and establish the EV market with a certain headstart. Now that has been accomplished; the Government will focus on electric two-wheelers & eco-friendly electric busses.

Also Read: 5 Reasons Why Tata Tigor EV Should Be Your First Electric Vehicle

What does the Ministry have to say?

A senior transport official stated: “There are very few e-car variants that have an affordable price tag. Things may look up from next year, as auto manufacturers Tata and Hyundai are planning to introduce electric hatchback variants.” 

The currently available EVs are mostly above ₹15 lakhs. We have the Mahindra e-Verito from ₹12.67-13.03 lakhs,  Tata Nexon EV from ₹13.99-16.85 lakhs. Others go even higher, such as the MG ZS EV- ₹20.99-24.68 lakhs & Hyundai Kona EV- ₹23.7-23.9 lakhs. Things are expected to change with more affordable EVs such as the Altroz EV & Wagon R EV coming soon. Affordable EVs such as the Tigor EV have already started reaching the market pricing: ₹11.99-13.14 lakhs.

Also Read: 7 Upcoming Electric Cars in 2021-2022

Upcoming Electric Cars In 2021 2022
Upcoming Electric Cars In 2021 2022

According to Kailash Gahlot, Transport Minister, the Government has no intentions of extending the subsidy further. It was on a first-come, first-serve basis, and the aim has been fulfilled. Also, compared to other segments, there is more demand for EVs in two-wheelers & public transport than four-wheelers. However, the buyers will still benefit from the waiver on registration fee & road tax on BEV vehicles during the three years of the policy.

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In addition to that, two & three wheelers also attract subsidies up to ₹30,000 except the road tax & registration fee waiver.

Also Read: Delhi Govt Exempts Electric Vehicles From Odd-Even rule.

The minister also stated: “The electric cars segment has received the required push in Delhi. Our focus now is to tap the two-wheeler, freight, and public transport segments of electric vehicles (EVs) as they constitute a major chunk of Delhi’s over 10 million registered vehicles. They also ply on the road more as compared to private cars, thereby causing more pollution.” 

“A subsidy is not required for e-cars as such because those who can afford to pay around ₹15 lakh for a vehicle do not care if the cost is ₹1-2 lakh more, sans the subsidy. Our aim is to provide the subsidy to those who need it the most, and they include auto drivers, two-wheeler owners, delivery partners and so on.”

Also Read: Electric Vs Internal Combustion Scooter| What Should You Choose?

EVs are on the rise!

There are about 10 million vehicles registered in Delhi, out of which about 70% are two-wheelers. Now they need to focus on promoting electric two-wheelers and public transport. The Government will also include buses, three-wheeler autos, and delivery vehicles in the plan.

Advantages of buying an electric car in IndiaAdvantages of buying an electric car in India
Advantages of buying an electric car in India

EVs are rising in the market with the government schemes. Out of the total cars registered in FY2022, 7% were EVs. The current time with the burning stubble & winter smog would only contribute more towards the growth of EVs around the capital. NDMC has also planned to set up significant charging infrastructure around the state.

Also Read: How Hero Motor Corp May Enter Electric Segment in 2022

The Government plans to introduce more than 2,000 electric buses by 2022. The Government would do this along with installing and upgrading all bus depots with appropriate charging infrastructure. This would help them to make their 50% public transport fleet electric without any emissions. Overall all of these initiatives are to make Delhi the EV capital following the chief minister’s vision.

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Yuvam Gupta
Mechatronics Engineer in the making. Automobile enthusiast Creating revving content. Living life 1/4 mile at a time. Always hustling for skills, experience, and knowledge.

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