EV sales gain steam in Chandigarh, 40-foldrise in 5 years

Electric vehicles are becoming increasingly popular in Chandigarh, with registrations seeing a whopping 3700% rise within five years.

From just 27 electric vehicles registered with the Registration and Licensing Authority (RLA), Chandigarh, in 2017, the number went up to 1,021 in 2021.

However, the overall footprint of these eco-friendly mobility options still remains negligible in comparison to fossil fuel-based vehicles in the city.

At 2,908, the total number of electric vehicles (EVs) registered between 2017 and 2021 are just a fraction of more than 12 lakh internal combustion (IC) vehicles — petrol, diesel and CNG — registered in the same period in Chandigarh, which is known to have the highest per capita vehicle ownership in the country.

Now, in a bid to make the eco-friendly vehicles even more popular, the Chandigarh administration last week notified the draft EV policy. The policy, which will come into effect from April this year, provides for financial benefits (or subsidies) ranging from ₹3,000 to ₹2 lakh on purchase of EVs besides making other provisions to boost their adoption and sales.

Chandigarh Renewal Energy and Science & Technology Promotion Society (CREST) has prepared the draft EV policy and is the nodal agency for its implementation.

Debendra Dalai, CEO, CREST, said: “These additional financial incentives have been proposed over and above the incentives given under the Centre’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. Moreover, recurring expenses in the case of EVs are very low, which will attract the consumers.”

Cost & infra issues in EV sales

The draft EV policy also makes ambitious targets in limiting sales of IC vehicles. For example, it proposes to register only electric two-wheelers after three years of the policy implementation and stop registering fuel-based options altogether.

According to Sanjay Dahuja, managing director of the auto dealership Berkeley Group, the popularity of the EVs is rising among Chandigarh residents, but there are several constraints that have restricted their growth at a faster rate.

“This is particularly the case with the car segment. Most car options available in the market are in the premium segment, above ₹25 lakh mark, which dissuades most buyers. The below ₹15 lakh EV cars have gained currency among the city’s motorists. Subsidies are already there, but the EV technology has to become cheaper so that more people can afford them,” said Dahuja.

The issue of charging infrastructure has also plagued EV sales. “Most E-cars have limited reach on a single charge. People don’t buy cars just to travel within the city. Chandigarh’s EV policy can only cater to the city and not areas outside the city. There is need to have larger number of charging stations not only within Chandigarh but also on long routes.” said another car dealer. The administration plans to install 100 charging stations across the city in next two years.