The EV policy i.e. Delhi EV Policy 2.0 in Delhi will be extended till March 2025. Delhi Chief Minister Atishi announced this on Thursday. This means that electric vehicles purchased on or after January 1, 2024 will be exempt from the subsidy and road tax. Delhi is one of the largest EV markets in the country, accounting for almost a tenth of total domestic sales.
sales were affected
According to data from FADA, an organization of automobile dealers, the removal of incentives caused a sharp increase in the purchase prices of electric vehicles, leading to a sharp drop in sales, Economic Times reported. This move by the Delhi government comes amid pressure on the sale of electric cars in the country over the past few months as vehicle prices are high and charging infrastructure is inadequate. There is concern about reach among customers. There are around 12,000 public charging stations in India.
How much subsidy do you receive?
Under the electric vehicle policy, a subsidy of Rs 5,000 per kWh (up to a maximum of Rs 30,000) is provided for the purchase of an electric two-wheeler, depending on the battery capacity. A fixed subsidy of Rs 30,000 per vehicle is given to three-wheelers irrespective of the total cost and battery capacity. Electric car sales remained stable at around 29,500 units in the first four months of FY25.
Electric vehicles are expected to enter the market with around 10 to 15 per cent of new vehicle sales (including two-wheelers, three-wheelers and passenger vehicles) in India due to government incentives, rising prices of fuel and greater consumer awareness. By 2030, annual sales of electric vehicles are expected to exceed 10 million units, with substantial growth in the deployment of electric buses, commercial vehicles and private cars. Electric vehicles could account for 30 to 40 percent of new vehicle sales in the market.
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