Delhi Electric Policy Extended Till March 31: Subsidy, Road Tax Exemption

Chief Minister of Delhi Atishi on Thursday in a press conference announced the extension of the Delhi Electric Policy till March 31, 2025.

What Did Chief Minister Atishi Announce?

At a press conference in the national capital the Chief Minister said due to poor air quality, the Delhi cabinet has decided to extend the EV policy and roll out subsidies and road tax exemptions pending from January 1.

"Electric vehicles purchased on January 1,2024, and after will get subsidy and road tax exemption, which were earlier halted by the BJP while Arvind Kejriwal was sent to jail," said Atishi.

Why The Sudden Reinforcement?

One of the largest EV markets of the country is in Delhi.

The Delhi government's move has come amid a certain amount of pressure in EV sales across the country and the PM E-Drive Scheme.

The primary goal of the scheme is to accelerate the adoption of Electric Vehicles (EVs), develop essential charging infrastructure and establish a robust EV manufacturing ecosystem across the country.

EV sales have already seen a record surge under this scheme.

The key objective is to speed up the transition to electric vehicles by offering upfront incentives for EV purchases and encouraging the development of charging infrastructure, by reducing transport-related environmental impacts.

What Are The EV Optics So Far?

EV sales have remained almost flat in the first four months of FY25. Growth in the two-wheeler segment is also moderate. Therefore, factors such as low running costs, resale value, battery life as well as driving range drive customers towards ICE vehicles.

EV sales have also been on a decline for a third consecutive months and have fallen 3 per cent as of July, according to FADA data.