Electric two-wheelers sales dip after subsidy confusion

New Delhi: Manufacturers of electric two-wheelers have claimed a sharp fall in their sale as customers who purchased the vehicles during April 1 and June 30 this year are yet to receive subsidy given by Delhi government to promote green vehicles.

According to the Society of Manufacturers of Electric Vehicles (SMEV), after the new budget was tabled, Delhi government changed their subsidy slab due to which, customers who bought the two-wheeler are still waiting for subsidy, which has created confusion among the new buyer. “The Delhi government in its budget announced the subsidy of around Rs 5,500 per electric two-wheeler to be paid directly to customer. But those who bought the two-wheelers between April 1 and June 30 are yet to get the money,” Sohinder Gill, Director, Society of Manufacturers of Electric Vehicles (SMEV) told PTI.

Customers are making round of government officers and vehicle dealers showroom to get their refund. Even the dealers are unsure about the status of customer’s subsidy and exemption of VAT given to dealers to boost sale of e-vehicles. According to SMEV, non-payment of subsidy has heavily impacted the sale of electric vehicles, which has seen a dip of over 50 per cent in sale. “This has affected the sale of electric two-wheelers. It has gone down by 50 per cent. We have written various letters to Delhi Government regarding VAT structure on electric vehicles,” Gill said.

The society claims that Delhi government has withdrawn 12.5 per cent benefit it used to give on VAT. Admitting a change in subsidy given by Delhi Pollution Control Committee (DPCC) of Delhi government, a senior officer said, “Earlier Delhi government used to give a total benefit of 29 per cent on a vehicle, which included subsidy to the customer, VAT and road tax exemption. “Now as central government has also announced a scheme of subsidy for electric vehicle so two subsidies cannot be clubbed for the same product. Over all money benefit will remain the same and no one will be at the losing end,” the officer said.

Delhi government said they aim to promote e-vehicle usage in the city to curb high pollution level. “We are giving direct benefit to customers and transferring money into their account. There was delay in the payment of some customers, which was due to delay in notification but all the buyers will get benefit. We have also asked electric vehicle manufacturer to partner with Delhi government in promoting and creating infrastructure for e-vehicles,” the officer said.

A series of meeting is being organized with manufacturers and dealers to clarify the subsidy structure. As per the current structure, two-wheelers costing up to Rs 20,000 will get a subsidy of Rs 1,000, vehicles costing more than Rs 20,000 but up to Rs 25,000 will get a benefit of Rs 2,000 and two-wheelers costing more than Rs 25,000 will get Rs 5,500 as subsidy.

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