Delhi Government To Extend EV Incentives, No Subsidy For 4-Wheelers Though

Delhi's electric vehicle buyers can expect relief as the government plans to extend its existing EV policy until March 2025. This potential move ends a six-month limbo period where consumers missed out on significant financial benefits.

The current policy, which expired on December 31, 2023, offered substantial incentives including road tax exemptions and purchase subsidies. Two-wheeler buyers received up to ₹30,000 in subsidies, while three-wheeler owners got ₹30,000 worth of incentives per vehicle.

Transport department officials are currently drafting the extension proposal for cabinet approval. A report by ETAuto has indicated the upcoming policy will likely be the final extension before the government introduces a new comprehensive EV policy, dubbed "EV Policy 2.0."

The extension could reinvigorate Delhi's EV adoption rate, which had seen a slowdown due to uncertainty about incentive availability. Local dealerships reported potential buyers were hesitant to make purchases without clarity on subsidies.

For manufacturers and dealers, this extension provides a clear timeline to plan inventory and marketing strategies until the new policy is unveiled. The automotive sector is particularly interested in how Policy 2.0 might reshape Delhi's approach to electric mobility. 

Also, the Central Government recently introduced the PM E-Drive scheme that replaced the FAME-II subsidy policy with a ₹10,900 crore budget outlay. Although there are no incentives available with four-wheelers, the government has set aside a separate sum to set up 22,100 fast chargers across the country. To know more about the subsidies and what benefits the central scheme will have on offer, click the link here.