EV subsidies will stop eventually: Delhi transport minister explains why

You might want to take a decision on buying an electric car soon since the current government subsidies available on electric vehicle purchases under various schemes and state policies will not continue in the long run. As pointed out by Delhi Transport Minister Kailash Gahlot on Monday, it will not be “very healthy” to provide subsidies to buyers of electric vehicles beyond a point.
Government subsidies exist for a specific reason. The EV market in India and globally is only now catching on but it is an industry that the government wants to push for, citing its many advantages. In order to ease EV adoption, India has a set of schemes and policies that provide financial benefits to bring down the initial cost of buying. For example, the FAME II scheme that offers up to Rs 1.4 lakh in subsidies.
“Sufficient subsidies are being given. Subsidies are good to create a demand but electric vehicles have to be within the reach of the common man eventually. That will drive the entire industry in a sustainable way,” the minister said during an interaction at the Delhi EV Forum.

“I do not think we need to further increase (it)… We will provide subsidies till the industry matures,” he added.
The Delhi government has already offered subsidies worth around Rs 100 crore on electric vehicles under its Electric Vehicle Policy launched in 2020, the highest by any state.
Apart from incentives, the government has also waived road tax and registration fees for all EVs. The minister also reiterated the government's plan to have one charging point in a radius of 3 km.
Gahlot also said the Delhi government lost two important years due to the Covid pandemic but it will be able to achieve the target of 25 percent electric vehicles among total vehicle registrations by 2024.