Delhi Government to Offer 30% Subsidy for EVs

7 June 2008

Times of India. The Delhi (India) government will offer a 30% subsidy for the purchase of battery electric vehicles. The funds for the subsidy will come from a levy on diesels implemented about 3 months ago, which has already pulled in Rs 10 crore (US$2.3 million) for the government.

“Delhi has about 5.4 million vehicles of which 30% are diesel-operated. We are trying to motivate consumers to switch to the environment-friendly option, not only in the four-wheeler segment but also in the two and three-wheeler one,” says environment secretary J K Dadoo. “This would be specially beneficial for those families that own more than one vehicle,” he said. The government may be focusing on diesel but this is also a good alternative for those who own vehicles running on petrol.

However, there are very few manufacturers of battery-operated vehicles in India. Reva is the only company manufacturing four-wheelers. The company is set to open its showroom in Delhi shortly. Those who purchase the vehicle for use in Delhi will get a refund on the 12.5% VAT. Those only registering the vehicle in the Capital will get a refund of 2%. Meanwhile, all dealers will get a 15% subsidy on the base price of each vehicle. So, for someone buying the Rs 3.5 lakh model for use in Delhi, the almost 30% rebate would mean the car would cost about Rs 2.3 lakh [about US$5,000].