Delhi EV Policy introduced to boost sales of electric vehicles in the national capital included subsidies besides road tax waiver among other benefits
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Price of electric vehicles in Delhi will cost more than some of the other parts of the country after the state government decided to remove road tax waiver on EVs to benefit customers as part of its efforts to boost sales. The state government had introduced the benefit as part of the Delhi EV Policy, which helped to reduce cost of EVs by 10 per cent for both four-wheelers and two-wheelers in the passenger electric vehicle segment. The EV Policy expired on August 31, leading to hike in EV prices which impacted sales in the national capital.
According to a report on Mint, inventory is piling up at EV dealerships after removal of the tax benefits. Economic Times also reported that EV sales has taken a hit after the Delhi EV Policy expired quoting sources within auto dealers’ body Federation of Automobile Dealers Association (FADA). The withdrawal of the Delhi EV Policy benefits means that driving home an electric vehicle will require to pay 10 per cent road tax which was earlier waived off.
Also Read : EV manufacturers in India don’t need subsidies anymore, says Nitin Gadkari
Delhi EV Policy 2.0 in pipeline
The Delhi EV Policy, which was extended twice after its expiry on December 31 last year, was introduced on August 7, 2020, for a period of three years. The state government is yet to finalise a new EV policy that is expected to replace the expired policy soon. The Electric Vehicle Policy 2.0 is still being discussed while a final draft is being prepared for notification before it takes shape. However, the state government has not yet revealed a definite timeline on when it is expected to launch.
According to sourced quoted by Economic Times, the dealers’ body and other stakeholders are planning to meet the state government officials to seek a resolution. The report claims that EV sales have gone down ‘drastically’ within the first few days of September. One of the sources was quoted saying, “The state government was to take a decision on extension of road tax waiver on EVs. But that did not happen even though the cap on the number of vehicles to get the benefit has not been reached. The gains accrued so far stand to get derailed if the matter is not resolved quickly.”
Also Read : Nitin Gadkari advocates for reducing GST on flex-fuel vehicles to 12%
Delhi second among cities with highest EV sales
Delhi stands second on the list of Indian cities with highest electric vehicle sales. In 2023, Delhi saw a total of 8,211 registrations of electric vehicles, as Bengaluru topped the chart with 8,690 EV sales. Between January and May this year, Delhi has only seen 4,016 EVs sold as overall sales in the segment has dipped.
Check out Upcoming EV Cars in India, Upcoming EV Bikes in India.
First Published Date: 06 Sep 2024, 11:20 AM IST
