15% subsidy as festive bonanza on electric vehicles

  • 15/10/2014

  • Asian Age (New Delhi)

To boost the sale of electric vehicles in the national capital during the festive season, the city administration is reportedly providing subsidies directly to the customers on the purchase of both electric scooters and electric cars. A subsidy of 15 per cent on the maximum retail price (MRP) is being directly transferred to the customers’ bank accounts within one month from the date of purchase of the vehicle. Earlier, the 15 per cent subsidy on the maximum retail price of the vehicles was claimed by the manufacturers. Now, the customers will also benefit from zero value-added tax (VAT) and two per cent reduced road tax on buying electric vehicles in Delhi. In effect, the customer would have to pay 30 per cent less on the total cost of the vehicle. The administration’s move is intended to benefit the end consumer in a speedier and transparent way. The move has also reduced the need to undertake cumbersome paperwork and made the subsidy process simpler and quicker. The move is also in line with the Centre’s push to bring down the pollution levels in the country. There are about 75 lakh registered vehicles in the city. Delhi was tagged as one of the most polluted cities of the world in a report by the WHO. A senior officer said that the 15 per cent subsidy coupled with VAT exemption and discount in road tax was yet another indication of the administration’s growing support and endorsement of a greener mode of transport. “We think this is only the beginning of greater things to come and a sure sign that the government will definitely continue to create the right eco system for greater adoption of EVs.” More than 50,000 customers, who have purchased electric vehicles, have so far gained from this subsidy scheme as these vehicles are 60 per cent cheaper to run, 70 per cent easier to maintain and 90 percent less polluting when compared to the petrol scooters. Some of the leading brands of electric scooters like Hero, Yo, Avon and Lohia are reportedly experiencing increased walk-ins and customer interest during this festive season with the city administration initiative. There are as many as 14 two-wheeler manufacturing firms and one four-wheeler company listed with the city administration.