Buyers of electric cars in Chandigarh may no longer receive financial incentives during the remaining period of the Electric Vehicle (EV) Policy, even though the UT Administration increased the quota for incentives by 1,500 vehicles in July last year. Sources in the Chandigarh Administration indicated that the enhanced quota, which was exhausted last year, is unlikely to be extended for the remainder of the policy period.
Administration unlikely to extend enhanced quota
Sources said that buyers of electric vehicles are already availing of several benefits, and no other government is providing a subsidy on the purchase of new electric vehicles. The Administration is considering not extending the enhanced quota, which was exhausted last year, for the remainder of the policy period. However, it will continue to provide other benefits, such as free registration of electric vehicles through the Registering and Licensing Authority (RLA), to promote the adoption of EVs and increase their share in the city to 18 per cent.
The sources clarified that eligible buyers of other categories of electric vehicles would continue to receive incentives under the EV Policy.
Previous quota enhancement and pending approval
On the recommendation of the UT Electric Vehicle Advisory Committee, the UT Administration had, on July 31 last year, increased the cap on the number of electric four-wheelers eligible for incentives from 2,000 to 3,500 units. According to sources, the proposal was sent to the Finance Department for approval and, thereafter, was to be forwarded to the Ministry of Home Affairs (MHA) for final approval. However, it is still pending with the department.
Sources said the proposal was unlikely to be sent to the MHA as the five-year EV Policy will expire next year, after which the Administration may revise the policy as required.
Incentive details and registration statistics
The UT Administration had offered a financial incentive of Rs 1 lakh to Rs 1.5 lakh to buyers of electric four-wheelers. However, the incentive was discontinued after the original quota of 2,000 cars under the EV Policy, launched in September 2022 for five years, was exhausted early last year. The maximum incentive for an electric car was capped at Rs 1.5 lakh. After the quota was increased by 1,500, nearly 250 vehicle owners applied for the incentive.
Chandigarh’s EV Policy, in force for nearly four years, has so far led to the registration of nearly 21,000 electric vehicles, including about 7,500 electric two-wheelers and more than 4,000 electric cars.
