Chandigarh, May 16: In a development that may slow the momentum toward green mobility, the Chandigarh Administration has discontinued financial incentives on the purchase of electric cars under its Electric Vehicle (EV) Policy, citing the exhaustion of its predefined subsidy quota.
Officials from the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST), the nodal agency overseeing policy implementation, confirmed that subsidies for the first 2,000 electric car buyers have already been fully disbursed.
“The incentive quota for electric cars is now exhausted,” a senior CREST official said. “We had allocated subsidies for the first 2,000 vehicles, and that limit has been reached.”
Announced in September 2022, the EV Policy set out a five-year plan to promote electric vehicle adoption by offering financial support across various categories. The scheme offered incentives ranging from ₹3,000 to ₹2 lakh for the first 42,000 e-vehicle buyers, including subsidies of:
- ₹3,000 for the first 25,000 e-bicycles,
- Up to ₹30,000 for the first 10,000 e-two-wheelers, and
- Up to ₹1.5 lakh for the first 2,000 electric cars.
To date, over 6,000 e-two-wheeler buyers have availed the benefit, but CREST officials noted that not a single application has been received for e-bicycle subsidies so far. Meanwhile, the electric car incentive quota has been entirely used up.
While new buyers will no longer be eligible for financial incentives on electric cars, the administration has confirmed that exemptions from registration fees and road tax will continue to be offered.
“Though the subsidy component for cars is over, the waiver on registration fee and road tax will still apply to all categories,” the official added.
The depletion of EV subsidies could affect purchasing decisions in the city, where early adoption was partially fueled by government support. The policy’s remaining benefits may still offer some relief to those considering a switch to electric vehicles.
