The government of Uttar Pradesh has announced new benefits for electric vehicle buyers in the state, as reported by the Indian news agency ANI. Chief Minister Yogi Adityanath imposed road tax and registration fee exemptions on EV purchases for three years from October 14, 2022.
Remarkably, the timeframe of effectivity will increase to five years if the purchased EVs are produced in the state.
Execution of the policy
Uttar Pradesh has dispersed orders to the RTOs to guarantee their compliance with immediate effect.
The report indicated that the state will offer 100% tax exemption on EV sales and registrations for buyers for three years from October 14, 2022, to October 13, 2025.
Scope of the policy
The Electric Vehicle Policy, first announced on October 14, 2022, highlighted that the qualified EVs for the incentives are battery, ultracapacitor, or fuel cell-powered vehicles.
Specifically, it includes two-wheelers, three-wheelers, and four-wheeler EVs such as the following:
- Battery Electric Vehicle (BEV)
- Fuel Cell Electric Vehicle (FCEV)
- Strong Hybrid Electric Vehicle (HEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
Apart from that, the government will also offer a 100% rebate on EVs produced, sold, and registered in the state between October 14, 2025, and October 13, 2027.
In addition, the state government will also provide a 15% subsidy on the EV factory price sold in the state. This subsidy includes the following:
Electric Vehicles | Subsidy |
first two lakh electric two-wheelers | ₹5,000 per vehicle |
first 50,000 electric three-wheelers | a maximum of ₹12,000 |
first 25,000 electric four-wheelers | up to ₹one lakh per vehicle |
first 400 buses | up to ₹20 lakh per e-bus |
Max of 1000 e-good carriers | ₹1,000 per vehicle |
Uttar Pradesh will also provide an “advance” for government employees to urge them to buy EVs.
Benefits
The road tax and registration fee exemption is expected to aid 3,997 EV owners in Agra who paid taxes and registration fees between October 14, 2022.
For context, Agra’s Divisional Transport Office (RTO) currently has 11340 EV registrations. Of that total, 3997 units were purchased from October 14, 2022, up to date. According to the report, the mix includes 30 cars, and 437 e-rickshaws, while the remaining majority are two-wheelers.
With the Central and State Government’s EV policies, the two-wheelers’ price decreases by ₹15,000 to ₹20,000. Meanwhile, electric cars’ price drops by up to ₹1 lakh.
These kinds of government initiatives are very significant for a state to progressively adopt electric vehicles. It can encourage more people to switch to a more sustainable solution, given that EVs are relatively more expensive than conventional vehicles.