To boost sales of electric vehicles in the capital during the festive season, the Delhi government has decided to provide subsidies on EVs directly to customers for buying both electric scooters and electric cars.
This positive move will give a fillip to EV demand as well as improve the outlook for the EV industry. Subsidies have begun increasing consumer enthusiasm urging them towards the purchase of electric vehicles.
A subsidy of 15 percent on the MRP is being directly transferred to a customer’s bank account within two months from the date of purchase of the vehicle. Customers will also benefit from zero VAT and 50 percent reduced road tax when buying electric vehicles in Delhi.
This move by the government is intended to benefit the end consumer in a speedier and transparent way. This move has also reduced the need to undertake cumbersome paperwork and made the subsidy process simpler and quicker.
Sohinder Gill, the director of the Society of Manufacturers of Electric Vehicles, said: “The 15 percent subsidy coupled with VAT exemption and 50 percent discount in road tax is yet another indication of the growing government support and endorsement of a greener mode of transport. We think this is only the beginning of greater things to come and a sure sign that the government will definitely continue to create the right eco system for greater adoption of EVs.”
More than 45,000 customers who purchased electric scooters have so far gained from this subsidy scheme as their electric scooters are 60 percent cheaper to run, 70 percent easier to maintain and 90 percent less polluting when compared to the petrol scooters. Some of the leading brands of electric scooters like Hero, Yo, Avon and Lohia are reportedly experiencing increased walk-ins and customer interest during this festive season with this Delhi government initiative.
SMEV works towards providing active support to the EV industry and the Indian government in shaping a brighter future for EVs and for catapulting India on the global map. SMEV assists in creating an ecosystem for furthering the growth of this segment while encouraging indigenous R&D and development of electric vehicles.
SMEV is also participating in the Implementation of the Government’s National Electric Mobility Mission Plan 2020. It is also pushing for introducing EVs in some cities as part of government’s pilot projects.