Delhi Government Announces the Extension of EV Policy Till March 2025

Published  December 3, 2024   0
Atishi Marlena Singh - Delhi Government EV Policy Extension

Delhi EV policy, buyers of electric two-wheelers will get ₹5000 per kWh of battery capacity as a subsidy, up to a maximum of ₹30000. For electric three-wheelers, a flat subsidy of ₹30000 is offered, regardless of the vehicle’s battery size or price.


The Delhi government has extended its Electric Vehicle (EV) policy till March 31, 2025. Chief Minister Atishi Marlena Singh announced that subsidies and road tax exemptions, which were pending since January 1, 2024, will now be provided. This decision aims to tackle Delhi’s worsening air pollution and promote the use of eco-friendly vehicles. Buyers of EVs purchased on or after January 1, 2024, will benefit from these financial incentives, making EVs more affordable.


Delhi is a key market for electric vehicles in India, contributing nearly 10% to the country’s total EV sales. However, the withdrawal of road tax exemptions in August earlier this year caused a sharp increase in EV prices, leading to a drop in sales. The Federation of Automobile Dealers Associations (FADA) reported that the removal of these incentives slowed EV adoption in the city. High vehicle prices, lack of charging stations and concerns about battery range further discouraged buyers. India currently has only 12000 public EV charging stations compared to 87000 petrol and diesel stations, making charging infrastructure a major challenge.


As per the EV policy, buyers of electric two-wheelers will get ₹5000 per kWh of battery capacity as a subsidy, up to a maximum of ₹30000. For electric three-wheelers, a flat subsidy of ₹30000 is offered, regardless of the vehicle’s battery size or price. This policy extension is expected to boost EV sales and encourage more people to switch to electric vehicles. By making EVs more affordable and accessible, the Delhi government aims to reduce pollution and promote sustainable transportation, offering hope for cleaner air and nature-friendly living in the coming years.