The Electric Car Policy is Extended by Delhi CM Atishi Until March 31, 2025

Nitin Konde, Varun Bhardwaj

Nov 30, 2024 — 2 min read

Delhi Extends Electric Car Policy Until March 2025: CM Atishi

Following a cabinet meeting, Delhi Chief Minister Atishi on November 28 announced an extension of the Delhi Electric Vehicle (EV) Policy till March 31, 2025. The Delhi cabinet has agreed to prolong the EV policy and execute subsidies and road tax exemptions that have been languishing since January 1 due to poor air quality, Atishi said at a press briefing.

Electric vehicles (EVs) have not been eligible for any road tax exemptions or subsidies for the last ten months. However, she stated that EV owners will be eligible for subsidies beginning on January 1, 2024. Furthermore, EV purchases will no longer be subject to road tax. The CM further stated that the EV program has been extended till March 31, 2025.

Focus of Delhi EV Policy

The Delhi EV strategy is noteworthy since it aims to have 25% of all new car registrations in the state be EVs by 2024. "12% of total registered vehicles in the region were EVs—the highest in the country and double the national average of 6%," reported the CM in FY24.

This comes as the Centre prepares to launch the third version of the FAME (Faster Adoption & Manufacturing of Electric Vehicles) programme shortly. HD Kumaraswamy, the federal minister for heavy industries, announced in September that the eagerly anticipated FAME-III plan would be launched in two months.

Current Electric Vehicle Scenario in Delhi

Electric vehicle (EV) sales in the nation's capital have apparently been negatively impacted by the Delhi government's notable decision to remove the road tax exemption for electric vehicles and two-wheelers earlier in September of this year. Due to the festive season sales discounts, the number of electric two-wheeler registrations in India increased by about 73% month-over-month (MoM) to surpass 1.2 lakh units in October of this year. According to Vahan data as of October 30, sales of two-wheeler EVs reached 1.4 lakh units, the highest level since March of this year, just before the Centre's FAME-II programme came to an end.

Current EV Vehicle Scenario in India

The electric vehicle (EV) market in India is expanding quickly thanks to government subsidies, growing environmental awareness, and technology breakthroughs. India hopes to dramatically boost EV adoption through programmes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, transforming its transport system in the direction of sustainability and innovation.

India's goal is to increase the percentage of EV sales to 30% for private automobiles, 70% for commercial vehicles, 40% for buses, and 80% for two-wheelers and three-wheelers by 2030. By 2030, there will be 80 million EVs on Indian roadways, which is an ambitious goal. Additionally, India's 'Make in India' campaign aims to produce all EVs domestically.