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Delhi’s AAP govt withdraws subsidies on electric cars; here’s why

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The sops for 4-wheelers have been withdrawn as Delhi has reached its 1,000-car goal outlined in the AAP govt's EV policy. Subsidies for electric 2-wheelers and public transport segment remain.

Delhi’s AAP govt withdraws subsidies on electric cars; here’s why
The Delhi government has withdrawn subsidies on the purchase of electric cars with sales of EVs gaining momentum. The AAP-led government had introduced subsidies on electric four-wheelers and other battery powered vehicles in August last year under the Delhi electric vehicle policy. The EV policy is aimed at improving Delhi's air quality by ensuring 25 percent of all new vehicles sold in the state are battery-operated by 2024.
Under the scheme, the state gave subsidies on the first 1,000 electric cars sold in the national capital. The government also waived road tax and registration fees for EVs. Apart from this, EVs were given a subsidy of Rs 10,000 per kWh of battery capacity. The benefits extended till Rs 1.5 lakh per vehicle. Two-wheelers received a subsidy of Rs 5,000 per kWh of battery capacity, capped at Rs 30,000 per vehicle.
The subsidies on cars have been withdrawn as Delhi has reached its 1,000-car goal outlined in the EV policy.
Elaborating on why the subsidies on four-wheelers has been withdrawn, Delhi Transport Minister Kailash Gahlot told Hindustan Times that those who pay Rs 15 lakh for a car could shell out Rs 1-2 lakh more for it.
“Our aim is to provide the subsidy to those who need it the most, and they include auto drivers, two-wheeler owners, delivery partners and so on," Gahlot said.
The subsidies on two-wheelers and other public transport, however, remain unchanged.
“Our focus now is to tap the two-wheeler, freight and public transport segments of electric vehicles as they constitute a major chunk of Delhi’s over 10 million registered vehicles," he added.
According to the Delhi government, 1.5 lakh vehicles were registered between July and September, including 93,091 vehicles driven on petrol or diesel, 6,857 CNG vehicles, 7,257 vehicles driven on both CNG and petrol and 7,869 electric vehicles. EVs accounted for 7 percent of the total vehicles registered with Delhi’s transport department during the period.
The state sold close to 23,000 electric vehicles from August to October, which included 5,246 two-wheelers and 10,997 e-rickshaws. Between August and October, the state transport department registered 1,415 electric cars and 30 buses.
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