Chandigarh's electric vehicle (EV) revolution, which saw explosive growth just two years ago, has dramatically downshifted. Data from the city's Registering and Licensing Authority (RLA) reveals that sales of electric four-wheelers and two-wheelers are now crawling at a snail's pace, raising questions about the momentum of the green transition in the Union Territory.
A Sharp Deceleration in Growth Momentum
The numbers paint a stark picture of slowing adoption. According to the RLA Chandigarh, electric four-wheeler registrations stood at a mere 123 in 2021 and 254 in 2022, before skyrocketing to 1,013 in 2023—a massive fivefold jump from the previous year. However, this momentum has nearly stalled. Registrations climbed to 1,326 in 2024 and have inched up only slightly to 1,348 so far in 2025, indicating a severe growth plateau.
The situation is more concerning for electric two-wheelers. After a promising rise from 122 registrations in 2021 to 752 in 2022 and a peak of 2,103 in 2023, the sector has been on a consistent decline. Registrations fell to 1,752 in 2024 and have further dipped to just 1,404 in the current year, 2025.
Enhanced Incentives Fail to Ignite Demand
In a bid to reverse this trend, the Chandigarh Administration revised its EV policy three months ago, introducing a slew of enhanced incentives:
- The cap on incentivized personal electric four-wheelers was raised from 2,000 to 3,500 units.
- The incentive for electric two-wheelers was doubled from Rs 5,000 per kWh to Rs 10,000 per kWh, with a maximum cap of Rs 30,000 per vehicle.
- Women buyers were offered a special enhanced subsidy of Rs 12,500 per kWh, capped at Rs 37,500 per electric two-wheeler.
- Insurance support of up to Rs 5,000 was introduced for the first year of electric two-wheeler ownership.
- The incentive for electric bicycles was increased from 25% of the cost (up to Rs 4,000) to 25% of the cost (up to Rs 6,000).
Despite these financial sweeteners, the registration data for 2025 shows a tepid response from consumers, suggesting that incentives alone may not be sufficient to drive adoption.
The Persistent Infrastructure Gap
A critical factor behind the sales slowdown appears to be the lagging charging infrastructure. The administration's promise, made during the launch of the EV policy in September 2022, to set up 100 public charging stations remains largely unfulfilled. To date, only 35 charging stations have been established, although plans for expansion across all areas of Chandigarh have been announced.
Currently, users are charged Rs 8 per unit for slow/moderate charging, Rs 10 for fast charging, and Rs 11 for battery swapping. The UT has set up 11 battery swapping stations for commercial EVs. The infrastructure gap was further highlighted when the administration's attempt to restrict registration of fuel-based vehicles after achieving "set targets" led to protests from automobile traders and residents, forcing a stall in the target-based registration system in November last year.
The story of Chandigarh's EV market is now one of unfulfilled potential. While policy incentives have been amplified, the on-ground reality of sparse charging infrastructure and slowing consumer uptake presents a significant challenge. For the city's electric dreams to get back on the fast track, bridging the gap between policy promises and tangible, reliable infrastructure will be crucial.
