Manufacturers of electric vehicles (EVs) have praised the Delhi government’s decision to prolong road tax exemptions and subsidies till March 31 of next year, claiming that this will not only increase sales but also contribute to pollution reduction. The Delhi Electric Vehicle Policy has been extended until March 31, 2025, with the reinstatement of subsidies and road tax deductions for vehicles bought on or after January 1st of this year, according to a Thursday announcement by Delhi Chief Minister Atishi.
A 25% purchase subsidy (up to ₹5,500) for e-cycles, ₹30,000 for e-rickshaws and e-carts, ₹5,000 per kWh of battery capacity (capped at ₹30,000) for two-wheelers, and ₹30,000 for e-light commercial vehicles are just a few of the incentives available under the Delhi EV policy. Additionally, the first 1000 cars up to ₹1.5 lakh would receive a purchasing incentive of ₹10,000 per kWh of battery capacity. Nonetheless, Delhi surpassed the 1000-car milestone in August 2021, and the Delhi government may issue additional announcements on e-car incentives.
According to Satinder Singh Bajwa, Chief Commercial Officer at JSW MG Motor India, “such progressive policies will certainly spur the demand for EVs here and will also aid in inspiring change for a healthier environment in and around the national capital.”
Delhi Electric Vehicle Policy
The MG ZS EV, Comet, and the newly released Windsor are the company’s three successful EVs.
Similarly, Nishanth Dongari, the founder and managing director of Pure EV, stated that the policy’s extension will be crucial in lowering vehicle emissions, which are a major cause of urban air pollution. Given the recent increase in AQI values, which have brought attention to the pressing need for cleaner mobility options to protect public health, Electric Vehicle adoption is essential. He stated, “This policy extension is a key enabler of India’s broader climate and sustainability goals, beyond immediate monetary benefits.”
“The Delhi government is establishing a standard for other States to follow in addressing environmental issues and laying the groundwork for a sustainable future by continuing to incentivize EV adoption and infrastructure development,” Dongari continued.
Lohia Auto, a manufacturer of electric three-wheelers, added that the choice to send incentives straight to consumers’ bank accounts will undoubtedly encourage more people to buy EVs. The government should, however, make it clear that policy support will be available for at least the next five years in order to hasten the adoption of EVs. This will assist interested parties in making appropriate investment plans. Ayush Lohia, CEO of Lohia, stated, “We also need to lower the GST on batteries, which is a significant component of the total cost of an electric vehicle.”
