Despite the government’s decision to extend its EV policy until March 2025, Delhi is the only major state or union territory to experience a significant drop in EV registrations this year. The national capital saw a startling 85% decline in registrations, from 1,435 units in January to only 220 in November.
Other significant EV markets, however, have seen growth. According to industry analysts, buyers in Delhi have been discouraged from purchasing EVs due to the policy’s ambiguity and unexpected halts. Despite its official expiration in August 2023, the Delhi Electric Vehicle (EV) Policy 2020 has continued to operate through extensions. Delhi Chief Minister Atishi declared in November that automobiles bought on or after January 1 will once again be eligible for subsidies and exemptions from road taxes. Buyers are still awaiting the benefits that the extension promises, though.
After the state government removed the road tax exemption for electric vehicles and two-wheelers in September, EV sales in Delhi all but stopped. Only 82 electric cars were sold that month as a result of the steep price increase brought on by the discontinuation of incentives.
The Delhi government did not offer the incentives for two months in a row, September and October. The extension was only announced in November after the Supreme Court criticized the administration for its inability to regulate air pollution in the capital.
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