Chandigarh Aims to Be Model EV City by 2027

People in Chandigarh looking to purchase electric cars for private use will no longer receive government subsidies. The Union Territory administration has officially ended incentives for this category after exhausting the quota of 2,000 vehicles allotted under the city’s Electric Vehicle (EV) Policy, which came into effect in September 2022. Under this policy, private electric car buyers were previously eligible for subsidies of up to ₹1.5 lakh.

However, subsidies are still available for 4,000 electric two-wheelers and 1,000 commercial electric vehicles, which include non-private use cars.As of October 31, 2024, more than 20,000 electric vehicles have been registered in Chandigarh. A total of ₹34.73 crore in subsidies has been disbursed under the EV policy so far.

The policy, which spans from September 20, 2022, to September 19, 2027, aims to subsidize 42,000 vehicles across various categories with incentives ranging from ₹3,000 to ₹2 lakh. This includes 25,000 e-cycles, 10,000 e-bikes, 2,000 private electric cars, and a specified number of commercial EVs.

Now that the quota for private electric cars has been met, new buyers will not be eligible for the subsidy. A senior official from the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST) mentioned that a proposal has been sent to the central government, requesting a reallocation of unused subsidies from e-cycle and commercial EV quotas to private electric cars. If approved, it could bring some relief to new car buyers.

Meanwhile, the administration has urged citizens to consider other electric mobility options like e-cycles and e-bikes, which still come with financial incentives.

EV owners in Chandigarh continue to enjoy benefits such as free parking and exemption from registration fees and road tax for five years—advantages not extended to conventional fuel-powered vehicles.

As part of its five-year EV roadmap, the UT administration aims to gradually phase out the registration of fuel-based vehicles. This initiative is a key component of Chandigarh’s broader strategy to become a "Model EV City" by 2027, with the goal of achieving the highest adoption rate of zero-emission vehicles in India. Currently, the city has 24 operational EV charging stations, including 9 battery swapping stations.