On Thursday, Chief Minister Atishi announced various cabinet decisions, including the extension of the Delhi Electric Policy till March 31, 2025.
On Thursday, Chief Minister Atishi announced several cabinet decisions, including the extension of the Delhi Electric Policy till March 31, 2025. Atishi stated at a press conference that due to poor air quality, the Delhi cabinet has decided to extend the EV policy, which includes subsidies and road tax exemptions, that has been in effect since January 1.
“Electric vehicles purchased on Jan 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,” she stated. The chief minister announced another cabinet decision, stating that the Delhi government has authorized a Rs 17 crore grant to the Delhi Scheduled Caste Finance and Development Corporation Limited (DSFDC) to pay delayed salaries to its employees.
EV Sales are Decreasing in India
The Delhi government’s action comes as the country’s electric car sales have declined in recent months due to high vehicle prices, poor charging infrastructure, and customer range worries. According to an ET report, India has approximately 12,000 public charging stations vs 87,000 gas outlets offering petrol and diesel.
Electric vehicle sales fell 3% year on year in July, marking the third consecutive month of drop, causing fears that the Indian market is mirroring a bigger global slowdown in EV sales. FADA has yet to release car registration numbers for August.
Electric Vehicle Subsidy in Delhi
The EV program offers a Rs. 5,000 subsidy per kWh of battery capacity (up to Rs. 30,000) for the purchase of an electric two-wheeler. According to the ET report, three-wheelers are given a fixed subsidy of Rs. 30,000 per vehicle, regardless of their overall cost or battery capacity.
Electric vehicle sales in the first four months of FY25 were nearly flat at 29,500 units. The demand for electric two-wheelers has also slowed. Several factors, including concerns about EV resale value despite lower operating costs, as well as concerns about battery life and driving range, have prompted some consumers to return to traditional fuels.
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