Buying An Electric Car In Delhi? Time To Spend More

The Delhi Government had mandated subsidies for new electric vehicles as per the Delhi EV Policy 2020. However, for electric cars, this was limited to just the first 1,000 units and was based on a first-come, first-served basis.

Now that the first 1,000 units of electric cars have left showrooms in the national capital, the Delhi government has removed the subsidy, which had a maximum limit of Rs 1.5 lakh per car.

Speaking to the Hindustan Times, Delhi Transport Minister Kailash Gehlot stated that the government of the National Capital had no intention of extending the subsidy to cover more electric cars but would instead concentrate on two-wheelers, freight movers and public transport. The Delhi Government is currently planning to only procure electric buses in the future with a total of 2,300 units expected to hit the roads by the end of 2022.

Speaking to the Hindustan Times, Transport Minster Gehlot said, "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."

Elaborating his position to HT, the Delhi Transport Minister stated, "Actually, a subsidy is not required for e-cars as such because those who can afford to pay around ₹15 lakh for a vehicle do not care if the cost is ₹1-2 lakh more, sans the subsidy. Our aim is to provide the subsidy to those who need it the most, and they include auto drivers, two-wheeler owners, delivery partners and so on."

As per the Delhi EV Policy 2020, the first 1,000 electric cars to hit the capital's roads recieved a subsidy of ₹10,000 per kWh of battery capacity, which was capped off at Rs 1.5 lakhs. In addition to the subsidy, the road tax and registeration fees were also waived for these first 1,000 electric cars.

Compared to the benefits for electric cars, Delhi offers a subsidy of Rs 5,000 per kWh of battery capacity up to a maximum of Rs 30,000 for two-wheelers, auto rickshaws and frieght carriers.

In the last three months, Delhi saw 22,805 electric vehicles hit its roads. Out of these 22,805 electric vehicles only 1,415 were electric cars contributing to just 6.2 per cent of EV sales in August, September, and October. On the other hand, 10,997 electric rickshaws(48.2 per cent) and 5,246 electric two-wheelers(23 per cent) hit Delhi's roads over the same period. Overall, Delhi has 121,903 EVs currently plying on its roads today.

Thoughts On Delhi Killing Off The Subsidy For Electric Cars

While the move may seem to be a bad one, the Delhi Transport Ministers words on current electric car buyers being able to spend more to buy an EV are quite true. Until an affordable electric car hits the roads, giving out subsidies for these vehicles doesn't really make sense.