Haryana government has announced a discount of up to 15 per cent for new EVs priced between Rs. 15 lakh and Rs. 40 lakh under its 2022 Electric Vehicle Policy
UPDATE: Honda’s stance in this matter so far: We are in process of getting more details from state government and will be sharing the price impact after those details.
State governments are certainly making moves across the country to lure in customers to buy eco-friendly vehicles and some have gone as far as offering attractive incentive schemes and tax benefits to help the brands, mainstream or startup, establish their production facilities in order to grow the business with the intention to enable a sustainable future.
The state government of Haryana has taken the spotlight following the approval of its 2022 Electric Vehicle Policy. It prompts incentives for small, medium and large-scale electric vehicle component makers and OEMs with an aim to achieve sustainability while financial benefits can also be availed for the buyers who purchase new EVs.
Over the period of the next ten years, electric vehicle manufacturers will receive 50 per cent of their SGST (State Goods and Service Tax) reimbursed by the government. The policy also enables incentives of up to Rs. 1 crore for setting up EV disposal facilities within the state. As for EV buyers, they will be treated with flat discounts.
While the schemes involved in the new policy are enticing, it is yet unknown how long the offers will be valid as only a short time period is prescribed as the Haryana state government encourages early movers to utilise the opportunity presented. The discounts and incentives for buyers are dependent on the segments in which they are being sold.
For instance, the Haryana residents can avail of a discount of up to 15 per cent if the price of the EV being purchased is between Rs. 15 lakh and Rs. 40 lakh. The discount will be extended to a maximum of Rs. 6 lakh. For full imports too, 15 per cent discount with a maximum of Rs. 10 lakh on EVs priced between Rs. 40 lakh and Rs. 70 lakh is availed.
Another interesting point is the incentives also cover hybrid vehicles as a 15 per cent flat discount will be valid at a maximum of Rs. 3 lakh for hybridised passenger cars costing below Rs. 40 lakh. In addition, a 100 per cent rebate in motor vehicle tax will also be available on new electric scooters, motorcycles and three-wheelers.
Considering hybrids, the Honda City eHEV is priced at Rs. 19.53 lakh for the fully-loaded trim (ex-showroom) and taking the 15 per cent discounts into account, the buyers in Haryana can drive home the midsize sedan with a price drop of close to Rs. 3 lakh.