Vegh Automobile views on Punjab EV Policy

Punjab cabinet approves EV policy: Offers cash incentives and tax waiver

On Friday, the Punjab Cabinet approved the Punjab Electric Vehicle Policy (PEVP) 2022 in an effort to control the state’s environmental pollution brought on by vehicle emissions. In addition to making Punjab a preferred location for the production of EVs, EV components, and batteries, EV policy also intends to expand infrastructure, manufacturing, research and development, and job creation.

The first 1 lakh EV purchasers in the state will receive a financial incentive of up to Rs 10,000 under the new scheme. A cash incentive of up to Rs 30,000 would be given to the first 10,000 purchasers of electric auto-rickshaws and e-rickshaws. First 5,000 purchasers of e-carts will receive a discount of up to Rs 30,000, while the first 5,000 purchasers of light commercial vehicles would receive a discount of up to Rs 30,000-50,000.

Pragya Goel who is the Co-Founder and CEO of Vegh Automobiles shared her views on the EV Punjab Policy.

EVs are not a mere change but a revolution that marks the end of the IC age and push towards NET ZERO. Individuals at every level, from customers to Government, are contributing towards this revolution to enable a paradigm shift that supports economical and environmentally sustainable mobility.

The Punjab EV Policy draft is a fine example of the above statement. The policy draft covers a 360-degree framework to enhance EV adoption. It includes learning, setting up R&D and testing facilities, supporting OEMs and component manufacturers, and offering special incentives to customers.

Electric two-wheelers contribute to more than 3/4th of new vehicle registrations in Punjab. As 50% of pollution from vehicular emission is contributed by Ludhiana, Jalandhar, Amritsar, and Bathinda, it is essential to focus on micro-mobility, esp. two-wheelers, to help achieve the EV adoption goal.

Although the Total Cost of Ownership of an EV is lower than an ICE vehicle, the higher upfront cost of an EV is a significant barrier to EV purchase in a price-sensitive market like India. The draft covers this aspect by providing an exemption from registration charges and facilitating an incentive of INR 3000/- per KWh Battery in addition to the FAME II subsidy. This initiative from the Government will lower the upfront cost of purchasing EVs.

The draft mentions supporting manufacturers in Punjab regarding staffing subsidies, infrastructure & industrial hub developments, electricity duty, and GST reimbursements. This policy will financially support Vegh Automobiles, the other OEMs, and component manufacturers to help develop facilities to produce quality products in line with international standards.

This Punjab EV policy will enable Punjab to be among the top states in EV adoption in the foreseeable future.

About Vegh Automobile:
“Vegh Automobiles’ ideology and potential are for the world to explore. Its incorporation rests on the pillars of change and solutions it will bring to the Electric Vehicle Industry. The aim is to make the world realize the impact of clean energy usage. Vegh’s electric scooters are proof of the said ideology. Vegh is here to diversify the automobile industry’s energy consumption patterns leaving lower dependence on imported fuels. We want to leave a legacy for the world to idealize.”


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