The announcement by the government in July to provide additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles (EVs) has not translated into higher EV sales till now.
In fact, due to a host of reasons, the sale of electric two-wheelers and four-wheelers has plummeted during April to September 2019, compared to the corresponding period in 2018, according to data shared by Society of Manufacturers of Electric Vehicles (SMEV), the registered association representing EV makers.
State Bank of India, the only bank in the country to have launched a loan scheme exclusively for EVs — ‘Green Car Loan’ (Electric Vehicle) — has seen only nine loans being sanctioned under this scheme since its launch in June, according to a source.
