Electric Vehicles: Registration charges free, more benefits incoming

The Union Government has decided to waive off the registration charges for Electric Vehicles (EVs) in India. This decision has been taken after a cabinet meeting chaired by the Union Minister for Road Transport – Mr. Nitin Gadkari. Additionally, the central government is planning to talk to state governments to convince them to further reduce the road tax that is currently charged. All these steps are being made for facilitating faster adoption of electric vehicles in the country.

Media sources suggest that the government of India will soon release a draft asking for public opinion and feedback on this step. It is worth noting that the road transport ministry currently charges Rs. 50 for two-wheeler registrations and Rs. 600 for four-wheeler registrations. For electric vehicles, these charges will now be waived off.

While the amount isn’t big enough for a prospective customer to chose EVs over conventional vehicles, the ministry believes that this step will show how serious the government is towards the concept of electric mobility. The government has already removed the permit condition for electric vehicles that is required for commercial operation.

It is worth noting that a major chunk of the on-road cost that a customer pays for, over and above the ex-showroom price, is Road Tax. At the moment, only Maharashtra, Karnataka, Rajasthan and Goa waive off the Road Tax for electric vehicles. Once other states too jump on the bandwagon, electric vehicle prices are expected to reduce by 4% to 10%.

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