This change has had a substantial impact on the sales of both electric two-wheelers and four-wheelers. Industry stakeholders are now planning to meet with state transport authorities to discuss their concerns.
Electric vehicle sales in Delhi have nearly stalled after the state government ended the road tax waiver for electric cars and two-wheelers, effective August 31. This decision has led to a significant increase in EV prices, with costs rising by 10%, making these vehicles more expensive than their petrol or diesel counterparts. As a result, sales of both electric two-wheelers and four-wheelers have been drastically affected, with registrations this month plummeting to almost negligible levels.
Delhi, one of India’s largest EV markets, represents about 10% of the country’s total sales. Industry stakeholders are set to meet with state transport authorities next week to discuss their concerns and seek a resolution to this issue.
The decision to remove the road tax waiver comes at a time when electric vehicle sales in India are already under pressure due to high prices, limited charging infrastructure, and range anxiety among consumers. The country currently has about 12,000 public charging stations compared to 87,000 fuel stations. As a result, sales of electric cars have remained nearly flat at around 29,500 units in the first four months of FY25, with a 3% year-on-year decline in July, marking the third consecutive month of decreased sales.
Industry experts, including Rajeev Singh from Deloitte Asia Pacific, attribute the slow adoption of EVs in the passenger vehicle segment to the high acquisition costs and concerns over driving range, with EVs being 1.35 to 1.7 times more expensive than comparable petrol cars.
