Electric vehicle (EV) manufacturers have lauded the Delhi government’s decision to extend subsidies and road tax exemptions till March 31, next year saying it will not only bolster the sales, but also help in reducing pollution.

On Thursday, Delhi Chief Minister, Atishi announced the Delhi Electric Vehicle Policy has been extended till March 31, 2025, with subsidies and road tax exemptions reinstated for vehicles purchased on or after January 1 this year.

The Delhi EV policy offers a range of incentives, including a 25 per cent purchase subsidy (up to ₹5,500) for e-cycles, ₹30,000 for e-rickshaws and e-carts, ₹5,000 per kWh of battery capacity (capped at ₹30,000) for two-wheelers, and ₹30,000 for e-light commercial vehicles.

Also, a purchase incentive of ₹10,000 per kWh of battery capacity for the first 1000 cars up to ₹1.5 lakh. However, Delhi crossed the 1000-car mark in August 2021 and incentives on e-cars are subject to further notification from the Delhi government.

“Such progressive policies will certainly spur the demand for EVs here and will also aid in inspiring change for a healthier environment in and around the national capital,” Satinder Singh Bajwa, Chief Commercial Officer at JSW MG Motor India, said.

The company has three successful EVs -- MG ZS EV, Comet and recently launched Windsor.

Similarly, Nishanth Dongari, Founder and Managing Director, Pure EV said that the extension of the policy will play a pivotal role in reducing vehicular emissions—a significant contributor to urban air pollution.

“Adoption of EVs is crucial given the recent spike in AQI levels, which have highlighted the urgent need for cleaner mobility solutions to safeguard public health. Beyond immediate monetary benefits, this policy extension is a key enabler of India’s broader climate and sustainability goals,” he said.

“By continuing to incentivise EV adoption and infrastructure development, the Delhi government is setting a benchmark for other States to follow in combating environmental challenges while paving the way for a sustainable future,” Dongari added.

Electric three-wheeler maker, Lohia Auto also said that the decision to transfer subsidies directly to the buyers’ accounts will definitely boost the adoption of EVs.

“However, to accelerate EV adoption, the government should announce a clear vision that policy support would be there for at least the next five years. This will help stakeholders to plan investments accordingly. We also need to bring down the GST on batteries, which is a significant component of the total cost of an electric vehicle,” Ayush Lohia, CEO at Lohia, said.

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