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 percent in sale.

"This has affected the sale of electric two-wheelers. It has gone down by 50 percent. 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The society claims that Delhi government has withdrawn 12.5 percent benefit it used to give on VAT.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 percent 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.