Delhi should urgently establish transparent, long-term incentives and ensure that promised benefits for EV buyers are implemented swiftly and effectively.
After Chandigarh is reported to have sold only 5.64 percent electric vehicles in the last five years, India’s capital, New Delhi, faces similar criticism over a sharp decline in electric vehicle (EV) registrations this year. Despite the government’s decision to extend its EV policy until March 2025, registrations in the national capital plummeted from 1,435 units in January to just 220 in November, marking a staggering 85 percent drop.
Other major EV markets are flourishing. In Maharashtra, sales rose from 1,297 units in January to 1,344 in November, a 3 percent increase. Karnataka saw a remarkable 18 percent surge, from 1,121 units to 1,333 during the same period, showcasing the growing demand for electric vehicles in these regions. Sector experts indicate that the lack of clarity and unexpected policy halts have discouraged customers from purchasing EVs in Delhi.
An anonymous automobile expert recently shared insights with an Indian business daily, highlighting the alarming drop in EV registrations in Delhi. This decline, he argues, stems from a need for consistent policy and more incentives for electric vehicles. While Maharashtra and Karnataka continue to grow in this market, Delhi’s indecision regarding policy renewals and the rollback of key incentives have hindered potential buyers. To successfully revitalize the EV market, Delhi must urgently establish clear, long-term incentives and implement promised benefits for EV buyers swiftly and effectively.
In September, electric vehicle (EV) sales in Delhi plummeted after the state government withdrew the road tax exemption for electric cars and two-wheelers. Removing these incentives caused EV prices to surge, leading to a significant decline in sales, with only 82 electric vehicles sold that month. The Delhi government did not reinstate the incentives for two consecutive months, September and October. Only after the Supreme Court criticized the government for its inability to tackle air pollution in the capital were the incentives finally reinstated in November.
The Delhi Electric Vehicle (EV) Policy 2020, officially expired in August 2023, has continued to operate through extensions. In a promising announcement in November, Delhi Chief Minister Atishi revealed that subsidies and road tax exemptions would be reinstated for vehicles purchased starting January 1. However, many eager buyers are still left in oblivion, awaiting the promised benefits from this extension.
