EVs Get More Expensive As Delhi Government Withdraws Subsidies

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The Delhi government was one of the first ones to provide a subsidy for EVs. The benefits were capped up to ₹1.5 lakh per vehicle to encourage more people to buy EVs. In a very surprising move, the Delhi government has withdrawn the ₹1.5 Lakh subsidy on electric cars in Delhi after the first thousand units were sold. As of now, there are no plans to further extend the scheme. The decision comes at a time when Delhi was inching closer to becoming one of the highest EV setting States. According to official figures, EV’s accounted for 7 % of the total number of vehicles registered in the Delhi government transport department in Q2 FY2022. These subsidiaries were helping in pacing up the EV adoption which has been the need of the hour.

Tata Tigor EV (1)

Official statements

Kailash Gahlot said in an interview,” the electric car segment has received the required push in Delhi. Our main focus is now to tap into the two-wheeler, freight, and public transport segments of electric vehicles as they contribute a major chunk of Delhi’s over 10 million registered vehicles. They also comply on the road more compared to a private car that may cause more pollution.” Kailash Gahlot also added, “Actually subsidy is not required for e-cars such as those who can afford to pay 15 lacs for a vehicle. Our main aim is to provide the subsidiary to those who need it the most,  they include auto drivers,two-wheelers, delivery partners, and so on. We are witnessing good results of our electric vehicle policy and the adoption of such vehicles is gaining pace. We are committed to realizing the dream of making Delhi the country’s electric vehicle capital according to the vision of Chief Minister Arvind Kejriwal.”

Porsche Taycan Side Charging Port

Current Subsidies

For other electric vehicles such as two-wheelers, the subsidy amount was ₹ 5,000 per kWh of battery capacity and a maximum benefit of ₹ 30,000 per vehicle. Now subsidies help in placing up the  EV adoption during the winter season especially when the city air quality remains hazardous or very poor for most of the days, primarily due to stubble burning. And of course, the idea has been to control any other form of pollution, even if by the slightest margin.


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