Rajasthan is now the 4th state to announce EV subsidies
Rajasthan Government announced a policy to subsidize the sale of electric vehicles (EV). The state component of the goods and services tax (SGST) would be refunded to buyers of all EVs in Rajasthan between April this year and March 2022.
Last week, the Rajasthan government announced a policy to subsidize the sale of electric vehicles (EV), making it the fourth state to do so after Maharashtra, Gujarat, and Delhi.
According to the policy document, EV buyers in Rajasthan would be refunded the state component of the goods and services tax (SGST) between April 2021 and March 2022.
Further, buyers of electric two- and three-wheelers will be offered additional cash subsidies ranging from Rs 5,000 to Rs 20,000, according to the size of the battery installed.
However, subsidies offered for two- and three-wheelers in Rajasthan are lower than in the other three states. Meanwhile, contrary to other states that offer buyer-side subsidies for electric vehicles, the government of Rajasthan does not offer cash subsidies for electric cars and buses.
The state government will provide these incentives in addition to the subsidy granted under FAME-2 (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) offered by the central government. After a muted consumer response, the FAME-2 subsidy on two-wheelers and three-wheelers was doubled last month.
As a result of these subsidies, the EV industry is hoping to see accelerated adoption of these electric vehicles in the country after years of low penetration despite their ambitious projections.
According to Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV), a lobby group representing the EV industry, these measures could help bridge the gap between consumers’ knowledge of EVs and their willingness to buy these vehicles.
