High road tax, lack of incentives slow down EV sales in Panchkula
In the last seven months, only 115 electric two-wheelers and 27 electric four-wheelers were registered. Out of 9,329 two-wheelers registered in 2024, only 105 were EVs. Similarly, out of 4,878 four-wheelers, only 1 EV and 106 hybrid EVs were registered
While Chandigarh races ahead with aggressive policies promoting electric vehicles (EVs), neighbouring Panchkula is witnessing a sluggish uptake, primarily due to the absence of state-level incentives and high road tax rates in Haryana. The stark policy contrast between the two cities is creating a gap in EV adoption.
According to official data, EV registrations in Panchkula remain minimal. In the last seven months, only 115 electric two-wheelers and 27 electric four-wheelers were registered. Out of 9,329 two-wheelers registered in 2024, only 105 were EVs. Similarly, out of 4,878 four-wheelers, only 1 EV and 106 hybrid EVs were registered.
The primary deterrent, say experts and buyers, is the 8% road tax levied on EVs in Haryana. In contrast, Chandigarh offers substantial incentives, including exemptions on registration fees and road tax, making EV ownership more affordable.
“The road tax in Haryana is very high, whereas in Chandigarh, they charge a nominal amount for the RC,” said Sanjeev Sharma, an EV owner from Kalka. “The government should provide some benefits on the purchase of EVs to encourage people.”
Some residents have resorted to registering their vehicles in Chandigarh despite purchasing them from Panchkula dealers. The city currently has only about 10 EV charging stations, further discouraging potential buyers.
“There is free parking for EVs in Chandigarh and they also provide incentives and subsidies. Such facilities must be provided by the Haryana government to its residents,” said Brahmpreet Singh, another EV buyer.
Sales representatives at local dealerships in Industrial Area, Phase-1, said, “In the last seven months, we sold only two EVs but 75 petrol and diesel cars.”
An official from the district administration, speaking on condition of anonymity, acknowledged the gap. “Earlier, there was a 95% rebate on road tax, but that was only for a limited time. We hope new schemes will be introduced.”
EV expert Prahlad Bhagat urged the state to step up. “The government should provide facilities and transparent schemes for purchasing EVs.”
