Delhi extends EV policy until March 2025: Check the benefits
In a move to promote electric vehicle (EV) adoption and combat air pollution, the Delhi government has announced an extension of its EV policy until March 31, 2025. The announcement was made by Chief Minister Atishi earlier today. "Electric vehicles purchased on January 1, 2024, and after will get a subsidy and road tax exemption, which were halted by the BJP when Arvind Kejriwal was sent to jail," Atishi said.
Delhi: A significant player in India's EV market
Delhi is a major contributor to India's EV market, accounting for nearly 10% of the country's total domestic sales. However, the segment witnessed a slump when the state government revoked a waiver on road tax for electric cars and two-wheelers from August 31. The move resulted in a hike in EV prices and, in turn, affected sales, data from the Federation of Automobile Dealers Associations (FADA) showed.
Subsidies under Delhi's extended EV policy
Under the extended EV policy, a subsidy of ₹5,000 per kWh of battery capacity (up to a maximum of ₹30,000) is offered for buying an electric two-wheeler. For three-wheelers, a flat subsidy of ₹30,000 per vehicle is provided regardless of the total cost and battery capacity involved. These steps are part of the government's efforts to promote electric vehicle adoption in Delhi.
Challenges facing India's electric vehicle sector
The Indian electric vehicle industry has been dealing with issues like high vehicle prices, insufficient charging infrastructure, and range anxiety among consumers. India currently has some 12,000 public charging stations against 87,000 fuel stations dispensing petrol and diesel. These problems have put pressure on electric car sales in the country over the past few months.
