Electric vehicles become 10% costlier in Delhi, registrations slip

livemint.com:

Ather Energy, Bajaj Auto, and TVS Motor Company, as well as leading electric passenger vehicle makers Tata Motors, MG Motor India and BYD, said that since 30 August, the Delhi government has been charging a road tax of 7%-8% in the case of electric two-wheelers and 10% for four-wheelers. Buyers enjoyed a full road-tax waiver under the now-expired EV policy.

Data from the government's Vahan portal reveals a marked slowdown in EV registrations in the first days of September, with not a single electric passenger vehicle registered in Delhi and only 19 electric scooters registered so far this month. While Vahan registration data often lag actual sales, partly reflective of the dip, dealers confirmed that in the past 3-4 days, almost no registrations have taken place due to the sudden increase in prices.

Prices for electric four-wheelers have also been adjusted to reflect the new 10% road tax charge, further exacerbating the situation. “We are negotiating with the customer by absorbing some of the amount ourselves and by passing on the rest to the customer, or in some cases absorbing it entirely.

But there is no indication right now that this amount might be returned to OEMs (original equipment manufacturers) or customers", a New Delhi-based e-two-wheeler dealer told Mint on condition of anonymity. Dealers and OEM representatives are scheduled to meet Delhi transport minister Kailash Gahlot on 9 September to seek relief.

The stakeholders are expected to request that the subsidies be reinstated or extended to prevent further disruption in the EV market and to maintain the momentum of EV adoption in the capital. The disruption in the city's EV market comes in the backdrop of a delay in the announcement of the EV Policy 2.0,