Tata Nexon.EV, Punch.EV, And MG Windsor To Get 1 Lakh Cheaper In Delhi: Here's Why
Accelerating EV adoption forms an important part of Delhi’s pollution-curbing measures. The city already has a fairly large electric vehicle population. Governmental incentives and subsidies have played a key role in increasing adoption here. The city is now set to witness a hike in its EV population as a fresh EV policy that would provide a cash incentive of up to 1 lakh rupees on private electric cars, particularly the ones that are priced under Rs 15 lakh, is in the works. The incentivisation will come in the form of scrappage bonuses for residents shifting from BS4 vehicles to EVs. This means that models like the Tata Punch.EV, Tiago.EV, and some variants of the Nexon.EV and MG Windsor will soon get cheaper in the capital city.
Models like the Nexon.EV, Punch.EV and Windsor are already among the best-selling ones in the country. The incentives proposed by the new policy will make them even more popular. These apply specifically to EVs priced below Rs 15 lakh (ex-factory). This segment now has models like the Tiago.EV, Tigor.EV, Punch.EV, Citroen eC3 and MG Comet. The Tata Nexon.EV and Windsor EV, two of the highest selling models in the segment have some of their respective variants priced under 15 lakh rupees. These may also qualify for the benefits.
These models are expected to see effective price reductions of over Rs 1 lakh. This, again, will not be a direct price cut from the manufacturers’ ends. These will be a combination of government incentives and tax exemptions.
Delhi will extend 100% exemption on road tax and registration fees for all EVs registered there until March 31, 2030. Residents who scrap old vehicles and buy electric cars which fall in the aforementioned price bracket will qualify for the incentives. The primary intention behind the incentivisation, according to reports, is to encourage the phase-out of old internal combustion vehicles and accelerate EV adoption.
To qualify for the incentives, the vehicle sent for scrapping must be registered in Delhi and should be BS-IV compliant (or older). The scrapping should be done at authorised facilities to qualify for the scheme. The owner should also purchase a new electric car within six months of receiving a certificate of deposit.
For private electric cars, this incentive is set at Rs 1 lakh. This will only be available to the first one lakh eligible applicants. This appears to be a clever strategy to promote early adoption. For two-wheelers, it is just Rs 10,000. Buyers of electric three-wheelers (L5M category) will qualify for incentives of up to Rs 25,000.
Circling back, all qualifying buyers of electric cars will get their incentives transferred directly through Direct Benefit Transfer (DBT). This is claimed to ensure transparency and eliminate any possible intermediates. Only the registered owners of the scrapped vehicles will be eligible for benefits.
People applying for this scheme and its benefits will have to do so through a formal process, as outlined by the Delhi transport department. The government is expected to officially announce this program in the upcoming Delhi budget session.
In addition to the above, the Delhi government is also extending a 100 percent exemption on road tax and registration charges for EVs until March 31, 2030. This further reduces the upfront cost of ownership. For mass-market EVs, this waiver alone can translate into substantial savings. Notably, full tax and registration fee exemption will only apply to EVs priced up to Rs 30 lakh.