The Delhi government announced that it will extend electric vehicle (EV) incentives under the state EV policy until March 31, 2025, in light of ongoing poor air quality in Delhi and surrounding areas.

Delhi Chief Minister Atishi confirmed that subsidies and road tax exemptions, which had been suspended earlier, will now resume for electric vehicles purchased from January 1, 2024. These incentives had been halted by the BJP following the arrest of Arvind Kejriwal.

Delhi is one of India’s largest EV markets, accounting for around 10% of total domestic sales. However, recent months have seen a slowdown in EV purchases, partly due to high vehicle prices and insufficient charging infrastructure. India currently has about 12,000 public charging stations, compared to 87,000 fuel stations.

Under the extended policy, EVs will receive a subsidy of Rs 5,000 per kWh of battery capacity, up to a maximum of Rs 30,000, for two-wheelers, while three-wheelers will receive a flat subsidy of Rs 30,000 per vehicle.