In another set of relief for electric vehicles (EVs), the Ministry of Road Transport and Highways, in a notification, announced that battery-operated vehicles are exempted from the payment of fees for issue or renewal of registration certificate and assignment of the new registration mark.
The Ministry of Road Transport and Highways issued a notification on 2nd August 2021.
Industry leaders welcoming the decision said that this will be a big boost for EV sales. With falling battery prices, electric two-wheeler prices are already comparable to their petrol counterparts. Moreover, the waiver of registration charges will further make e-bikes more affordable for the customers.
This amendment in Central Motor Vehicles Rules, 1989, towards waiver of registration charges for electric vehicles comes in the backdrop of a slew of incentives given by the Central Government and various state governments to boost EV adoption in the country.
The centre had recently announced a 50% increase in FAME II incentives for EV manufacturers to INR 15,000 per KWh. The GST levied on EVs is also at the lowest slab of 5% versus 28% for petrol bikes.
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In addition to Central Government, various state governments are also taking proactive steps to increase EV adoption in the country whereby incentives range from INR 11,000 to INR 20,000 per bike are given to customers to accelerate EV adoption in various states.
For example, Maharashtra gives an incentive of INR 25,000 on electric two-wheelers, Gujarat has an incentive of INR 20,000, and Delhi has an incentive of INR 16,200, over and above FAME II incentives.
Anjali Rattan, Business Chairman of RattanIndia Enterprises, said, “The proactive approach of Central Government in providing incentives for electric vehicles clearly shows the seriousness of the government to accelerate EV adoption in the country. These incentives make EVs buying more attractive for customers versus any petrol bikes.”