Subsidy to EV buyers beyond a point is not possible: Delhi transport minister

Delhi Transport Minister Kailash Gahlot on Monday said that it would not be a healthy practice to provide subsidies to electric vehicle buyers beyond a point. He also said that sufficient subsidies to the EV buyers are being given, and there is no need to further increase that. However, the minister also said that the Delhi government would continue to support the industry by providing subsidies till the electric vehicle industry matures.

The Delhi government has already offered subsidies worth around ₹100 crore on electric vehicles under its Electric Vehicle Policy that was introduced in 2020, the highest by any state, claims a report by PTI. Apart from offering incentives, the Delhi government has also waived road tax and registration fees for electric vehicles.

Speaking about the subsidies provided to the EV buyers under the Delhi EV Policy, the minister also said that subsidies are good to create demand but electric vehicles have to be within reach of the common man eventually. "Sufficient subsidies are being given. Subsidies are good to create a demand but electric vehicles have to be within the reach of the common man eventually. That will drive the entire industry in a sustainable way," the minister further added.

Gahlot also said the Delhi government lost two critical years due to the Covid pandemic, but it will be able to achieve the target of 25 per cent electric vehicles among total vehicle registrations by 2024. "The most important target is creating a good network of charging stations. Delhi already has more than 2,000 charging stations. Around 100 charging stations are being created. We have a target of making a charging point available in a radius of three kilometres," the minister added.

Despite the government initiatives, electric vehicle adoption is yet to reach the desired level. Speaking about that, the minister said that a lot of people are not adopting EVs due to the range issue and the unavailability of charging stations along the highways or outside Delhi. "The range issue must be addressed by the manufacturers... comfortable range solutions should be provided," he said.

He also stated that another reason behind the large number of people not adopting electric vehicles is that their cost is on the higher side. When asked if fires in electric vehicles have had an impact on prospective buyers, he said such cases happen whenever a new technology comes in and that things will mature over time.