EV can no longer enjoy road tax exemption in Delhi, sales graph takes a dip

The Delhi government has discontinued its road tax exemption policy for electric two-wheelers and four-wheelers. The update has been reported to affect the electric vehicle (EV) sales in the capital, according to a report by the Economic Times (ET).

According to industry sources, Delhi officials cancelled the waiver on August 31. 

“The state government was to take a decision on extension of road tax waiver on EVs. But that did not happen even though the cap on the number of vehicles to get the benefit has not been reached. The gains accrued so far stand to get derailed if the matter is not resolved quickly,” citing one official ET report.

According to the report, industry leaders stated that the development has resulted in a dramatic increase in pricing and a "drastic" impact on sales.

"The cost of owning an electric vehicle has unexpectedly increased by 10%. These vehicles cost more than their petrol or diesel counterparts. This sudden surge in purchasing price has seriously impacted sales of electric two- and four-wheelers," ET further stated. 

The administration also stated that registrations in September had been "almost negligible". 

Industry stakeholders intend to meet with state transportation officials next week to express their concerns and seek a resolution.

The new policy blow comes as EV two-wheeler sales have been swinging like a pendulum thus far in 2024. While registrations decreased 18% month on month (MoM) in August, they increased 34% MoM in July. In April, monthly sales fell by 50%.