electric vehicles in india

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Subsidies for electric cars in Delhi, India to be withdrawn

Electric vehicles in India have seen increased interest in recent times. But as EV uptake has increased, this has led the Delhi government to withdraw its subsidies on EV cars instead.

EV purchase subsidies are one of the key features of the Delhi EV policy. According to transport minister Kailash Gahlot, the government has no plans to extend the subsidy system for the purchase of electric vehicles any further.

India’s Delhi state’s electric vehicle policy, which began early last year, subsidized the first 1000 electric cars purchased in the capital — on a first-come, first-served basis. 

“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.”

About 73% of the 10 million registered vehicles in Delhi are two-wheelers. 

On October 28, the Delhi government plans to only procure electric buses in the future, with an aim to increase the share of zero-emission vehicles in public transport to over 50%. 

The government will induct at least 2,300 e-buses into its fleet by the end of 2022, and upgrade all existing bus depots with EV charging infrastructure, reports The Hindustan Times.

Reportedly, transport officials said there is lesser demand for electric cars or four-wheelers as compared to other EV segments owing to a lack of options in the auto market. 

“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,” said a senior transport official, on condition of anonymity.

At present, very few variants of e-cars are available in the market and most of them are above ₹15 lakh.

Tata Nexon EV ranges from ₹13.99 lakh to ₹16.85 lakh, Mahindra E-Verito costs between ₹12.67-13.03 lakh, Hyundai Kona electric ranges from ₹23.71-23.91 lakh, MG ZS EV is between ₹20.99-24.68 lakh, and Mercedes Benz EQC costs around ₹1.06 crore.