Why this is the perfect time to buy an electric vehicle
05 April, 2023
The sale of Electric Vehicles (EVs) in India has been gathering pace over the last few years. As many as 13 lakh EVs were plying on Indian roads as of July 2022. It will not be an exaggeration to claim that electric mobility will completely replace petrol and diesel-powered vehicles in the not-too-distant future.
Various state and central governments have also taken initiatives to boost the sale of EVs in India. In May 2021, the central government launched the Production-Linked Incentive (PLI) scheme to reduce the manufacturing cost for key EV components. It also reduced the Goods and Services Tax (GST) on the sale of EVs from 12% to 5%.
Furthermore, various state governments are offering subsidies to consumers on purchasing and registering electric vehicles. All these initiatives have contributed towards making e-vehicles a viable proposition. In this article, we will discuss why this is the perfect time to buy an EV, and explore the benefits of buying an EV in India in 2023.
1. Launch of affordable electric cars
Gone are the days when electric cars were only for the wealthy. Car manufacturers in India seem to have cracked the code and launched several affordable electric cars in recent times. A lot of options are available in the sub-₹ 20 lakh segment. Notably, several budget-friendly electric cars are waiting to be launched in 2023, which many manufacturers showcased at the recently concluded Auto Expo 2023.
2. Tax deduction on interest on EV loans
The government is offering a tax deduction of up to ₹ 1.5 lakhs against the interest paid on loans taken to buy electric vehicles, and the dedication can be claimed until the loan amount has been fully repaid. This benefit is currently available on loans for electric vehicles until 31 March 2023, but it is expected to be extended for two more years. The government may also allow a one-time tax deduction on the purchase of a new electric vehicle.
3. Popularity of electric two-wheelers
Electric two-wheelers are a budget-friendly alternative for those looking to shift to electric mobility. If you prefer a two-wheeler rather than a four-wheeler, there are a plethora of options in the electric two-wheeler segment. Apart from the already existing options, several new electric two-wheelers are set to be released in 2023.
4. Ready subsidies for electric vehicles
If you plan to buy an EV in 2023, you can save a lot by availing of subsidies offered by state and central governments. These subsidies are offered on the vehicle price, registration fees and road tax. For example, a 15% discount is available on the ex-factory price when you purchase a new electric car or two-wheeler. Besides, every Indian state offers specific subsidies for purchasing EVs under the Faster Adoption and Manufacturing of Electric Automobiles (FAME) II programme.
5. Improved infrastructure for EVs
The government is working on building adequate infrastructure for electric cars and bikes in India. Various state governments have floated tenders to build electric vehicle charging stations at various places. Builders and real estate developers are also doing their bit to ensure that EV owners do not face infrastructural problems by providing separate parking spaces with charging points in new constructions, including residential complexes and shopping malls.
Conclusion
In view of all the benefits listed above, this is undoubtedly the perfect time to go electric. Whether you are looking for a budget-friendly two-wheeler or a luxury car, there are plenty of options available in the Indian EV market. For better convenience and affordability, you can apply for an EV loan and avail of pre-approved subsidies, such as the Zip-Drive Instant New EV Loan from HDFC Bank. With an EV car loan from HDFC Bank, you get a paperless application process, instant disbursal, flexible repayment tenure and up to 100% on-road financing. So, you can drive away in your desired electric car or two-wheeler without further hesitation or delay.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. EV Car Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
