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- Apr 25, 2024
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Expect road tax savings to be little for mass-market EVs like the Nexon EV.
The more premium EVs could see a reduction of up to a couple of lakhs.
More incentives like purchase benefits, developing EV charging infrastructure planned under this EV policy.
Back in August 2020, the Delhi government rolled out its new Electric Vehicle Policy 2020 to help push EV adoption and tackle the air pollution problem in the capital. The Delhi government has now followed through on its claim and exempted battery electric vehicles (BEVs) from road tax.
This will bring down the final on-road prices of electric vehicles in Delhi, making them more affordable than before. India’s current long-range EV offerings are the Nexon EV, Hyundai Kona Electric, and the MG ZS EV. The Nexon EV is the most affordable option in the space with prices ranging from Rs 13.99 lakh to Rs 15.99 lakh (ex-showroom Delhi) and an ARAI-claimed all-electric range of 312km.
On the other hand, the likes of the MG ZS EV and Hyundai Kona are more premium offerings with prices above the Rs 20-lakh mark. The Kona Electric also boasts an all-electric range of over 400km. There’s also the luxury segment with the recently launched Mercedes-Benz EQC and the upcoming Jaguar I-Pace, Porsche Taycan, Audi e-tron and more on the way. Expect the road tax exemption savings to be more apparent with the premium EVs, possibly ranging up to a couple of lakhs.
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More incentives have been planned under the Delhi EV policy such as purchase benefits of up to Rs 1.50 lakh, public chargers within a 3km range from any given point within the capital, scrapping concessions, and Rs 6,000 off on a charging station for the first 30,000 charging points at existing homes or offices.
Expect other local governments to follow suit by introducing their incentives for EVs alongside the continuous development of the EV infrastructure in the country. Only time will tell whether the EV policy for Delhi boosts EV adoption in Delhi. The policy will be active for a three-year duration and more mass-market EVs are likely to go on sale in 2021 itself.
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