Delhi extends EV policy, revives subsidies to boost adoption

Delhi Chief Minister Atishi announced the extension of the Electric Vehicle (EV) Policy until March 31, 2025, reinstating subsidies and road tax exemptions from January 1, 2024, to combat air pollution. The move aims to revive EV sales, which slowed after earlier benefits were halted, and addresses challenges like high costs and inadequate charging infrastructure. Alongside, she introduced initiatives for public welfare, including a ₹17 crore grant for overdue salaries and a new optometry degree program.

Delhi Chief Minister Atishi announced on Thursday that the Delhi Electric Vehicle (EV) Policy will be extended until March 31, 2025. Speaking at a press conference, she stated that the move aims to address the capital’s poor air quality. Subsidies and road tax exemptions for EVs, halted earlier this year, will resume from January 1, 2024.

Under the EV policy, buyers of electric two-wheelers receive a subsidy of ₹5,000 per kWh of battery capacity, capped at ₹30,000, while three-wheelers are eligible for a flat subsidy of ₹30,000. The resumption of these benefits comes after EV sales in Delhi significantly declined when the government withdrew road tax waivers on EVs in August 2023, causing a spike in vehicle prices. This decision had slowed the growth of Delhi’s EV market, which accounts for 10% of India’s domestic sales.

Delhi’s EV sector faces challenges such as high vehicle prices, limited charging infrastructure, and range anxiety among consumers. India has only about 12,000 public charging stations compared to 87,000 petrol and diesel stations. These issues, along with battery life concerns and resale value skepticism, have dampened growth in EV sales nationally. Electric car sales dropped 3% year-on-year in July 2023 and remained flat at around 29,500 units in the first four months of FY25.

Atishi also announced a ₹17 crore grant to the Delhi Scheduled Caste Finance and Development Corporation Limited for overdue salaries and introduced a four-year optometry degree at Guru Nanak Eye Centre, highlighting the government’s broader focus on development and public welfare.