CHANDIGARH, Aug 4 — Three years after launching its ambitious Electric Vehicle (EV) Policy, Chandigarh has managed to convert only 5.2% of new vehicle buyers to electric options, despite offering incentives up to ₹2 lakh, zero registration fees, and full exemption from road tax.
Official figures reveal that out of nearly 1.60 lakh vehicles sold in the city since 2022, only 7,915 were electric—comprising 5,107 two-wheelers and 2,808 four-wheelers. In comparison, 1,52,047 fuel-based vehicles were registered in the same period, including 78,809 four-wheelers and 73,229 two-wheelers.
Chandigarh’s five-year EV policy, introduced in September 2022, aimed to curb pollution and reduce fossil fuel dependence by gradually phasing out the registration of fuel-based vehicles. The goal was to transform the city into a “Model EV City” by achieving one of the highest zero-emission vehicle penetrations in the country by 2027.
However, that goal has faced significant setbacks. Under pressure from various stakeholders, the UT administration lifted the cap on non-electric vehicle registrations in November 2023, allowing continued sale of petrol and diesel vehicles, including commercial models.
“We are creating awareness among residents and strengthening public infrastructure. We are hopeful of achieving better numbers by the end of this financial year,” said a senior UT administration official.
One major hurdle, officials and industry representatives agree, is the lack of charging infrastructure and buyer confidence. CREST, the nodal agency responsible for implementing the EV policy, had committed to installing 100 public charging stations, but only 35 have been made operational in the past three years.
“The high cost of EV battery maintenance and poor charging infrastructure are major concerns,” said Ram Kumar Garg, finance secretary of the Federation of Automobile Dealers’ Association, Chandigarh. “There’s also a psychological hesitation—people still don’t fully trust EVs for daily reliability.”
To increase adoption, the UT offers subsidies for up to 42,000 electric vehicles bought between September 2022 and September 2027. These include e-bicycles, e-scooters, e-cars, e-rickshaws, and goods carriers. However, only permanent residents of Chandigarh are eligible.
The administration also waived registration fees and road tax for five years on EVs and, as of May 2023, extended the same benefit to hybrid vehicles. In contrast, conventional vehicle owners must pay both.
In its fourth EV policy review meeting on August 1, the UT increased subsidies for electric two-wheelers and bicycles—with an added focus on women buyers, who are now eligible for up to ₹37,500 in incentives.
The two-wheeler subsidy has been raised from ₹5,000 to ₹10,000, and for electric bicycles, from ₹4,000 to ₹6,000. The quota for electric cars for personal use has also been increased from 2,000 to 3,500 slots after the earlier allocation ran out in May.
Despite these measures, experts say incentives alone won’t drive a shift unless accompanied by a robust and visible charging ecosystem, and stronger awareness campaigns.
As of now, the city’s ambitious transformation into a model EV hub appears to be idling in neutral.
