EV subsidy in Delhi Explained |Delhi Govt. EV Policy – 2024
H. Karan Kumar
Updated on Sept 19, 2023 | 6 min read
Introduction:
E-scooters like Ola Electric, Ather 450X, Hero Vida, etc., have the lowest on-road price in Delhi, and the reason behind this is Delhi’s EV subsidy. The high upfront cost of electric vehicles has cursed the EV market. If the future of mobility has to grow, its upfront cost has to go down, and to make it possible, the government and many companies are putting efforts on multiple fronts.
For the EV market to grow organically, the Indian government has incentivized electric vehicles and made them practical for a typical middle-class buyer. Innovative startups like 1C EV Charging, Zecat, Massive Mobility, etc., are working on making electric vehicles user-friendly in India.
With the equal participation of both government and businesses today, an electric vehicle has come down to a price that it can easily compete with its ICE equivalent vehicle. But there’s a catch: the prices of electric vehicles are different for different states. Due to this, EV buyers sometimes get confused and can’t make their minds up, and to help the buyers, we’re running a blog series where we’ll be explaining the EV subsidy in each state and UT of India.
In this article, we’ll explore the EV subsidies the Delhi Govt provides and its policies for widespread EV adoption.
Delhi EV policy:
Here’s a point-by-point explanation of all the EV policies the Delhi govt. Provides.
- Purchase subsidies: Upfront discounts on electric two-wheelers, three-wheelers, and cars.
- Registration fee waivers: Reduced or waived registration fees for EVs.
- Road tax exemption: No road tax for EVs for three years.
- Charging infrastructure: Subsidies for setting up private and public charging stations.
- Scrapping incentives: Additional discounts for scrapping old petrol and diesel vehicles and buying EVs.
Early Progress and Ongoing Challenges:
The policy has seen some early successes. Electric two-wheeler sales have surged, and more charging stations are being installed. However, challenges remain:
- Four-wheeler adoption: Electric car sales, while increasing, are still lagging behind two-wheelers. High upfront costs and limited model availability remain hurdles.
- Charging infrastructure: While growing, the charging network needs significant expansion to meet the projected demand, especially for fast-charging options.
- Battery swapping facilities: Encouraging battery swapping infrastructure could address range anxiety and affordability concerns for some segments.
- Policy extension and clarity: The initial policy period ended in March 2023 with a three-month extension. A clear and extended policy roadmap is crucial for sustained investor and consumer confidence.
EV subsidies in Delhi
The Delhi government’s EV subsidy varies depending on the type of vehicle you’re purchasing:
Two-wheelers:
- Battery-capacity linked subsidy: ₹5,000/kWh, capped at ₹30,000.
- Additional incentive for the first 1,000 individual e-cycle owners: ₹2,000.
Three-wheelers:
- E-cargo cycles: 33% of the e-cycle price, capped at ₹15,000.
- E-rickshaws and e-carts: ₹30,000.
- 5% interest subvention on loans and/or hire purchase schemes for e-rickshaws and e-carts with advanced batteries.
Four-wheelers:
- Battery-capacity linked subsidy: Up to ₹1.5 lakh based on the battery capacity.
Scrapping Incentive:
- An additional ₹2,000-₹3,000 on top of the existing subsidy if you scrap your old petrol or diesel vehicle while buying an EV (subject to evidence of matching contribution from the dealer/OEM).
It’s important to note that the Delhi EV Policy ended in March 2023, with a three-month extension until June 2023. Currently, details of the updated EV Policy 2.0 are awaited, and it’s unclear if the subsidy amounts will remain the same.
Vehicle Type | Subsidy Amount |
Two-wheeler | ₹5,000/kWh, capped at ₹30,000 |
Three-wheeler (E-cargo cycle) | 33% of the e-cycle price, capped at ₹15,000 |
Three-wheeler (E-rickshaw/E-cart) | ₹30,000 with no cap. |
Four-wheeler | Up to ₹1.5 lakh based on the battery capacity |
Scrapping Incentive (additional) | ₹2,000-₹3,000 |
In conclusion, the Delhi government has implemented a progressive electric vehicle policy to accelerate EV adoption through generous upfront purchase incentives and subsidies. The policy has seen early success in electrifying two-wheelers and public transport, though private four-wheeler and charging infrastructure growth remains slower.
As the initial policy period ended in March 2023, Delhi now has an opportunity to build on the momentum by announcing EV Policy 2.0. Key focus areas for the updated policy could include:
- Extending purchase subsidies, especially for four-wheelers and commercial vehicles
- Expanding charging infrastructure more rapidly, including fast chargers
- Promoting battery swapping and new business models
- Adding more clarity and certainty on the long-term policy roadmap
By learning from the initial phase and addressing ongoing gaps, Delhi can consolidate its position as one of the most EV-friendly states in India. This will align with India’s larger electrification goals and allow Delhi to tackle its critical air pollution challenges. The updated policy framework will be crucial in determining Delhi’s leadership on sustainable mobility.
