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Electric vehicles fail to spark Chandigarh buyers’ interest, only 5% registrations in a year
As per the data, from September 20, 2022, to September 18, 2023, 52,412 vehicles were registered in Chandigarh, out of which, only 2,599 were electric vehicles. The count of two-wheeler registrations stood at 21,400, out of which only 1,807 were electric vehicles
Despite a vigorous push from the UT administration, electric vehicles (EVs) are struggling to find takers, with only 5% EV registrations recorded in the last year.
The administration had launched the EV policy in September 20, 2022.
As per the data, from September 20, 2022, to September 18, 2023, 52,412 vehicles were registered in Chandigarh, out of which, only 2,599 were electric vehicles. The count of two-wheeler registrations stood at 21,400, out of which only 1,807 were electric vehicles. The tally of four-wheeler registrations stood at 27,387, out of which 752 were electric vehicles and 263 were hybrid (vehicles that have two sources of power, example fuel and electricity).
September saw the lowest number of electric two-wheeler registrations at 23 while last year, 26 were logged in the same month.
High cost, low mileage reasons for unpopularity
Ram Kumar Garg, finance secretary of the Federation of Automobile Dealers’ Association, Chandigarh, said, “The cost of e-scooters is too high and not affordable for all sections of the society. No e-scooter is available below ₹1 lakh, while a host of conventional, fuel-run two-wheeler options are available in this price range. Besides, currently, EV dealers are only selling scooters, what about buyers who want motorcycles?”
“Also, the mileage offered isn’t viable for most commuters. For instance, when fully charged, an EV two-wheeler can go upto 75km, which may not exactly help a person who has to commute to and fro to far off places such as Dera Bassi,” he added.
He further said the cost of batteries, which constitutes a significant portion of an EV’s price, continues to remain relatively high. This price differential makes EVs less affordable for many consumers, especially in a price-sensitive market like India. Until very recently there were no EVs in the sub-lakh segment.
Balwinder Singh, the executive member of the Federation of Automobile Dealers’ Association, said as far as four-wheelers are concerned, the production is very low, and the cost is almost double. “UT does not even have charging stations and people are forced to charge their vehicles at home,” he said.
A senior officer of the UT administration, who wished not to be named, admitted, “There are fewer options for those hoping to buy four-wheelers as most of them are very expensive. Also, the battery costs are exorbitant.”
He added that the wait period for four-wheelers is also around six months, which drives away potential buyers.
UT’s vigorous EV push
Earlier in June, UT had decided to stop the registration of non-electric two-wheelers after registration of 6,202 vehicles. However, after widespread criticism, the UT administration had, in July, relaxed the target substantially, taking it to 12,076. While earlier, it had decided to register electric and conventional two-wheelers in a 70:30 ratio in 2023, it had brought it down to 35:70, allowing registration of 70% non-electric two-wheelers in the current year.
Now again, they have decided to stop the registration of non-electric two-wheelers in the next few days.
Incentives enough to boost EV adoption?
UT’s EV policy is aimed at making Chandigarh a “Model EV City” by achieving one of the highest penetrations of zero-emission vehicles within the policy period of five years.
To promote EVs, the administration has waived registration fee and road tax for five years, while owners of vehicles running on conventional fuels have to pay both.
Also, an incentive ranging from ₹3,000 to ₹2 lakh is being offered for up to 42,000 vehicles of different categories, including 25,000 e-cycles, 10,000 e-bikes and 3,000 e-cars, purchased between September 20, 2022, and September 19, 2027.
The incentive is available for EVs bought anywhere across the country, but only permanent residents of Chandigarh are eligible for it.
In May this year, the UT administration exempted even hybrid vehicles, along with electric vehicles, from paying road tax for the next five years.
