 "Delhi EV policy woes: Registrations drop in capital while other states grow")
Delhi has emerged as the only major state or union territory that saw a sharp decline in electric vehicle (EV) registrations this year, despite the government extending its EV policy until March 2025. Registrations in the national capital slumped from 1,435 units in January to just 220 in November, a staggering 85 per cent fall.
In contrast, other major EV markets have reported growth. Sales in Maharashtra rose from 1,297 units in January to 1,344 in November, marking a 3 per cent increase, while Karnataka experienced an 18 per cent jump, with sales climbing from 1,121 units in January to 1,333 in November.
Sector experts say that lack of clarity, and unannounced halts in the policy have deterred customers from buying EVs in Delhi. The Delhi Electric Vehicle (EV) Policy 2020 officially expired in August 2023 but has remained in force through extensions. In November, Delhi Chief Minister Atishi announced that subsidies and road tax exemptions would be reinstated for vehicles purchased on or after January 1. However, buyers are still waiting to receive the promised benefits under the extension.
In September, EV sales in Delhi nearly ground to a halt after the state government withdrew the road tax waiver for electric cars and two-wheelers. The suspension of incentives led to a sharp increase in EV prices, significantly impacting sales, with only 82 electric cars sold that month.
For two consecutive months — September and October — the Delhi government did not extend the incentives. It was only after the Supreme Court criticised the government for failing to control air pollution in the capital that the extension was announced in November.
"Delhi’s sharp decline in EV registrations can be attributed to the lack of policy consistency and the absence of meaningful incentives for electric cars. While other states like Maharashtra and Karnataka have continued to see growth, Delhi’s indecision on policy extensions and the suspension of key incentives have discouraged potential buyers. To revive the market, Delhi needs to provide clearer, long-term incentives and ensure that the benefits promised to EV buyers are quickly rolled out,” said a sector expert, requesting anonymity.
The extension, however, did little to boost electric car sales, as the Delhi EV policy does not offer monetary incentives for electric cars.
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The policy provides a maximum incentive of Rs 30,000 for electric two-wheeler and auto buyers. For electric cars, the government had initially offered an incentive of Rs 1,50,000 but only for the first 1,000 buyers. Currently, electric car owners are eligible only for road tax and registration fee waivers.
Since January, only 6,059 electric cars have been sold in Delhi, compared to 13,584 in Maharashtra, and 12,872 in Karnataka.
Delhi EV Registrations:
January: 1,435 units
November: 220 units
Drop: 85 per cent
Maharashtra EV Registrations:
January: 1,297 units
November: 1,344 units
Increase: 3 per cent
Karnataka EV Registrations:
January: 1,121 units
November: 1,333 units
Percentage Increase: 18 per cent