Is this the right time to buy an Electric Vehicle?
The Government of India has announced the Faster Adoption and Manufacturing of Electric Vehicles (FAME 2 scheme) from April 2019, to give an impetuous to the EV market in India. It aims to incentivize both stakeholders: local players to produce EVs as well as consumers to buy EVs. The scheme has now been extended till 31st March 2024 so be sure to take advantage of it while you can.
There are positives as well as areas for consideration, but the intent is clear and it is only a matter of time before more stakeholders take advantage of the benefits of this scheme.
A quick glimpse of the eligibility and corresponding incentives offered for 4-wheeler EVs are given below: For details please read the FAME 2 document.
| Vehicle Segment | Approx. size of the battery in kWh | Total approx. incentive @ Rs. 10,000/- per kWh | Maximum ex-factory price to avail incentive (Rs.) |
| e 4 wheelers | 15 KWh | Rs 1,50,000 | Rs 15 Lacs |
| 4 W strong hybrid vehicle | 1.3 KWh | Rs 13,000 | Rs 15 Lacs |
So Yes this is the right time to buy an Electric Vehicle? Let’s get into more depth.
An electric car has been going through tons of development and major improvements recently. The efficiency and cost-effectiveness have greatly improved. Now is a good time to buy one?
Additionally, there are schemes offered by the Ministry of Finance to make owning an EV a reality.
- Owners of EVs pay a lower rate of just 5% GST on the purchase of an EV
- First-time buyers can avail of tax benefits up to Rs. 1,50,000/- under Section 80EEB of the Income Tax Act.
And it doesn’t stop there; to encourage electric mobility, state governments have offered their own incentives to EV customers. In Delhi for instance the state government has waived off the registration fees and road tax on all types of electric vehicles.
These schemes will certainly play a vital role to boost the adoption of EVs in India. All these benefits when added up are sure to incentivize many to buy an EV as their next vehicle.
So if you are still confused if the Right time to buy an Electric Vehicle? The benefits are there for the taking; the time is now
