Various state government’s are coming up with new policies to promote usage of electric vehicles in the country. Haryana state government is the latest to come up with new policy for electric vehicles. The new policy approved by the state government includes various incentives and concessions for both EV manufacturers and buyers. The policy is not just going to benefit EV buyers but also hybrid vehicle buyers. As per the new policy, EVs that are priced at up to Rs 70 lakh will get a discount of 15 percent and hybrid vehicles priced below Rs 40 lakh will get a maximum discount of Rs 3 lakh. Effectively, the Honda City Hybrid and the Tata Nexon EV Max (both priced around Rs. 20 lakh on-road) are cheaper by about Rs. 3 lakh.
The policy is quite encouraging for EV buyers. It should be noted that benefits that are mentioned above will be available to customers only for a limited period. Government has not mentioned the period till which these benefits will be available to customers. These benefits are beyond government’s FAME -II subsidies to encourage electric vehicle buyers in the state. So if you are planning to buy an electric car from Haryana, how much can you actually save.
For example, if you are planning to buy an electric SUV which cost above Rs 15 lakh. Then you are eligible for the benefits under the new policy. The high-end XZ+ Lux variant of Tata Nexon EV costs around Rs 17.40 lakh, ex-showroom. The customer can actually save 15 percent on it. This means, the owner can save around Rs 2,60,000 on the SUV right away. This brings down the price of the top-end Nexon EV to Rs 14.79 lakh. Apart from this 15 percent, EV buyer will also get a full rebate on motor vehicle tax and relaxation in registration fees. For an electric vehicle buyers who is planning to buy a car that costs anywhere between Rs 15 lakh to Rs 40 lakh, the customer can get Rs 15 percent or a maximum of Rs 6 lakh discount on the vehicle.
When it comes to imported electric vehicles that costs anywhere between Rs 40 lakh to Rs 70 lakh, the discount rate Rs 15 percent or a maximum of Rs 10 lakh. This has been done to compensate the high price tag of these imported cars due to hefty custom duties and taxes. While Centre and governments of various states are just concentrating on promoting electric vehicles, Haryana is keen in promoting hybrid vehicles too. For hybrid vehicles that are priced below Rs 40 lakh, Haryana government will offer a 15 percent or Rs 3 lakh maximum discount. Currently we have Honda City e-HEV in the strong hybrid segment in India. Soon, Toyota and Maruti Suzuki will also be launching their Creta rival Hyryder and YFG SUV in the market with both mild and strong hybrid engines.
The new policy has thought about EV manufacturers. The policy says that for the next 10 years, electric vehicle manufacturers will get half of their State Goods and Services Tax (SGST) reimbursed by the government. All size of EV industry corporations in the state will also get concessions under Haryana EV policy. Haryana government has also announced fixed incentives of up to Rs 1 crore for companies that would set up EV battery disposal units in the state.