Reduced Subsidies on E-Vehicles Result in a Huge Decrease in Sales

The Electric two-wheeler customers are confused on the subject of the subsidy they will get from the government after purchasing an electric vehicle. The customers who bought their EVs in the months of April, May and June have not received the subsidy amount till now which has resulted in a decrease of 50% in sales. Delhi government changed the subsidy slab in their new budget, in which the 12.5% benefit that was earlier given on electric vehicles as VAT, has now been withdrawn.

Talking about the issue to Press Trust of India (PTI), Sohinder Gill, Director, SMEV, said, "The Delhi government in its budget announced the subsidy of around Rs 5,500 per electric two-wheeler to be paid directly to the customer. But those who bought the two-wheelers between April 1 and June 30 are yet to get the money." He further added, "This has affected the sale of electric two-wheelers. It has gone down by 50 percent. We have written various letters to Delhi Government regarding VAT structure on electric vehicles."

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An officer in Delhi Pollution Control Committee (DPCC), said, "Earlier Delhi government used to give a total benefit of 29 per cent on a vehicle, which included subsidy to the customer, VAT and road tax exemption. Now as central government has also announced a scheme of subsidy for electric vehicle so two subsidies cannot be clubbed for the same product. Overall money benefit will remain the same and no one will be at the losing end.” He added, "We are giving direct benefit to customers and transferring money into their account. There was delay in the payment of some customers, which was due to delay in notification but all the buyers will get benefit. We have also asked electric vehicle manufacturer to partner with Delhi government in promoting and creating infrastructure for e-vehicles."

Delhi government said that they aim to promote e-vehicle usage in the city to fight high pollution levels. As per the current structure, two-wheelers costing up to Rs 20,000 get a subsidy of Rs. 1,000, vehicles costing between Rs. 20,000 to Rs. 25,000 get a benefit of Rs. 2,000 and two-wheelers costing more than Rs. 25,000 get Rs. 5,500 as a subsidy.

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