[TusharK]

The government of Delhi has withdrawn the subsidies on electric cars.



As per the Delhi EV policy 2020, the government was offering a Rs. 1.5 lakh subsidy on electric cars. However, this was only valid on the first 1,000 EVs registered. Reports suggest that the government has completed the disbursement of subsidies under this policy.

Kailash Gehlot, Transport Minister of Delhi, stated that the electric car segment had received the required push (with the subsidies) and now the focus would be on 2-wheelers, freight and public transport segments, as they constitute a major chunk of the 10 million-plus vehicles registered in Delhi.

The state also offers a waiver on registration fees and road tax. These are likely to continue.

Source: HT Auto

Link to Team-BHP News

[sreeharipv]

This is a policy well implemented. It was nice move to have given a good enough subsidy for a definitive number of purchases. This way, the intention is fulfilled and there is no additional drag on the government funds.

All laws should be written with validity clauses like this. This law is valid until or unless certain conditions are valid.

[kosjam]

They should bring another type of subsidy which does not directly impact their coffers, such as free public charging at select charging points, free toll, cheaper parking at government parking spaces, and similar conveniences which differentiate the experience between fuel guzzlers and EV owners.

This will help the next 10,000 to shift to the EV world.

[samee_arian]

When I start thinking about EVs there are different thoughts that come to my mind and I just not able to put things in perspective sometimes.

On one hand government wants to promote switch to EVs but not sure if is doing much about the sources of power generation which are predominantly fossil fuels, then it has to think about its own source of income when it comes to vehicles, which are taxes and registration fees, etc. and Automotive sector has been a steady source, so offering waivers or concessions on this is affecting their income.

Then there are the prospective buyers, most of them, at least in the current scenario are well to do people and look at EVs as a mode of city transport for now and may already own one or more ICE cars, so mostly these guys are buying them for their concern towards the environment and love for cars and while no one wants to say no to some savings, not sure if their decision to buy an EV will have a big impact from availability or withdrawal of such subsidies.

Then the third stakeholder here are the auto makers. There were a few like Reva who tried to offer fairly affordable options while not very enthusiastic ones. Same story when M&M took over, options offered were livable but not really provided any push. The current options available while much better like Nexon, MG ZS EV and Kona which are considerably higher than a usual B2 segment car or a compact SUV and then the ultra luxury options by Audi, Jaguar, Porsche, BMW and likes and not to forget Tesla. These are in a league of their own.

So for an ordinary buyer, I am sure such subsidies are definitely a big factor. Now coming back to Delhi, while they have done a great job by spelling out the deal for a select number of vehicles to give it a push, in my opinion, instead of offering free electricity and other sops, they should restore the benefit and also serve as an example for other states who are not doing anything about promoting EV.

[malim]

I wonder if data is available to demonstrate the impact (or lack thereof) of the subsidy on EV purchases. Seems to me that the determination of "required push" should be based on the number of EV registrations as a percentage of total LCV registrations over two time periods:
1. From subsidy introduction to removal.
2. From subsidy removal onwards, for the same duration as #1.

That would tell us if the subsidy delivered a boost to EVs, and if that boost is temporary or sustained.

[karan0009]

Residents of Gurgaon & Noida also contributed to subsidies on initial 1000 EV's. Majority of the EV's in Gurgaon are DL registered as Haryana government do not provide any subsidy.

[Shreyans_Jain]

Originally Posted by karan0009

Residents of Gurgaon & Noida also contributed to subsidies on initial 1000 EV's. Majority of the EV's in Gurgaon are DL registered as Haryana government do not provide any subsidy.

Very true. Haryana government’s stubborn stance on not providing relevant subsidies that UP and Rajasthan are also offering definitely played its part. Nexon EV costs 15L in Delhi for the mid model, and about 17.5L in Faridabad. Why would anyone register it in Haryana? It is actually cheaper to get a temporary rental address in Delhi (totally legally) and have the vehicle register there and get the subsidy.

[Indian2003]

Originally Posted by kosjam

They should bring another type of subsidy which does not directly impact their coffers, such as free public charging at select charging points, free toll, cheaper parking at government parking spaces, and similar conveniences which differentiate the experience between fuel guzzlers and EV owners.

This will help the next 10,000 to shift to the EV world.

This is paying money to people not to pollute. Only a tiny percentage of Indians can afford cars and should pay for them without incentives.

What about paying this money to the poor for not polluting to bring up their living standards. The poor cant care less about charging stations or gas prices. Their priorities are not to go hungry to bed and have a better life.

[kosjam]

Originally Posted by samee_arian

When I start thinking about EVs there are different thoughts that come to my mind and I just not able to put things in perspective sometimes.

On one hand government wants to promote switch to EVs but not sure if is doing much about the sources of power generation which are predominantly fossil fuels,

Regarding your point of power generation using fossil fuels, the main thing is that, even if your electricity is from a coal fired power plant, the inherent efficiency of a coal fired plant will always be higher than your petrol/diesel power car. So an EV will always be better overall. Secondly, in the near future, as more and more solar and other renewable energy come online, the energy mix will keep on getting greener and greener, while your petrol/diesel car will actually get dirtier and dirtier over time as it ages.

Originally Posted by samee_arian

Then there are the prospective buyers, most of them, at least in the current scenario are well to do people and look at EVs as a mode of city transport for now and may already own one or more ICE cars, so mostly these guys are buying them for their concern towards the environment and love for cars and while no one wants to say no to some savings, not sure if their decision to buy an EV will have a big impact from availability or withdrawal of such subsidies.

While agreed that most EV buyers are 2nd vehicle EV owners, such as myself (prospective) that doesnt mean I wouldnt want a subsidy for being one of the early adopters. I recently checked the nexon EV and put my decision on hold because I am no longer eligible for the subsidy offered in Maharashtra due to the long wait times (almost 6 months). It still is a high upfront cost for many of us and unless one is ultra rich, the finances always play a major role.

Originally Posted by samee_arian

Then the third stakeholder here are the auto makers. There were a few like Reva who tried to offer fairly affordable options while not very enthusiastic ones. Same story when M&M took over, options offered were livable but not really provided any push. The current options available while much better like Nexon, MG ZS EV and Kona which are considerably higher than a usual B2 segment car or a compact SUV and then the ultra luxury options by Audi, Jaguar, Porsche, BMW and likes and not to forget Tesla. These are in a league of their own.

While checking out the Nexon EV, i also came to know that Tata is building a large battery plant in Gujarat which might come online sometime next year, which could reduce battery costs significantly, as much as a third of the cost. (Nexon EVs battery pack costs 7-8 lakh currently, imported.) Once a couple of battery manufacturing plants come online, I expect a major drop in prices.
A quick check in the e-2wheeler market already shows market parity with the gas guzzling versions, for a marginal drop in performance. An ather or the ola scooty (when it does manage to get launched) are comparable cost wise (after subsidy) to a TVS Ntorq and offer similar performance.

While I agree that subsidies should have continued to a larger number, say, 10,000 units sold, considering that 10,000 cars loss in tax revenue would be miniscule compared to the reputation gain for EVs, I also understand limitations of a local government with their coffers being dried out due to covid and other factors.

I believe, there is still hope.