Maharashtra revises electric vehicle policy; up to Rs 2.5 lakh subsidy on e-cars

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Amid a global push towards electric vehicles (EV) and commitments to reduce carbon emissions, the Maharashtra government has revised its EV policy, 2018. The state is aiming to become the “top-most producer of battery-powered electric vehicles (EVs) in India”, under its Rs 930-crore policy.  Towards that end, electric vehicles bought in the state will be exempt from road tax and registration charges.

Maharashtra revises electric vehicle policy; up to Rs 2.5 lakh subsidy on e-cars

Amid a global push towards electric vehicles (EV) and commitments to reduce carbon emissions, the Maharashtra government has revised its EV policy, 2018. The state is aiming to become the “top-most producer of battery-powered electric vehicles (EVs) in India”, under its Rs 930-crore policy.  Towards that end, electric vehicles bought in the state will be exempt from road tax and registration charges.

The policy is valid until March 31, 2025 and the state aims to register around three lakh vehicles a year.

The government has also announced that it will only induct e-vehicles into its fleet starting April 2022, apart from electrifying 15 percent of state transport buses.

The state is also targeting to have around 1,500 charging stations in Mumbai alone by 2025.

Besides incentives to buyers and manufacturers, there will also be subsidies for setting up advanced chemistry cell battery manufacturing plants. The government is also planning to set up a 1-gigawatt battery manufacturing plant in Maharashtra.

Subsidy on electric two-wheelers

The revised Maharashtra EV policy 2021 has largely focused on electric two-wheelers, expecting them to make up 10 percent of all new vehicle registrations in the state by 2025.

The state will subsidise the first one lakh electric two-wheeler buyers with an incentive of Rs 5,000 per kWh of battery capacity. This time the incentive limit is Rs 10,000, which is double the previous cap of Rs 5,000. However, for those who purchase the two-wheeler before December 31, 2021, the policy offers an added early-bird incentive of up to Rs 15,000 for an e-vehicle with a 3 kWh battery capacity.

This means if you buy an e-two-wheeler with a battery capacity of 3 kWh, you will be eligible for a total benefit of Rs 25,000 (10,000+15,000) this year.

Take the example of Ather 450 Plus, which is priced at Rs 1.23 lakh. If you buy it in Maharashtra this year, it would effectively cost you around Rs 98,231. With road tax and registration waived, its on-road price would be close to the ex-showroom cost.

There’s also a scrappage incentive of Rs 7,000.

Also, the incentives will directly be applied at the manufacturers’ end to save buyers the hassle of coordinating with government offices.

There is also an additional incentive of up to Rs 12,000 for the manufacturers who provide a minimum five-year warranty on the battery and an assured buyback offer.

Incentive for electric cars and SUVs

Maharashtra will subsidise 10,000 electric four-wheeler buyers under the revised policy, hoping they make up 5 percent of new vehicle registrations in the state by 2025.

Under the revised Maharashtra EV policy, the buyers of electric four-wheelers can avail of a maximum incentive of Rs 1.5 lakh, Rs 50,000 more than the previous limit. However, the subsidy can be availed on the vehicles with a battery capacity of up to 30 kWh as the base incentive has been kept the same as the e-two-wheelers – Rs 5,000 per kWh of battery capacity.

This is on par with Gujarat and Delhi, but Maharashtra is giving the early-bird incentive on electric cars and SUVs as well. There’s an additional incentive of up to Rs 1 lakh for those who buy an electric four-wheeler on or before December 31, 2021. This means if you buy an e-car this year, you can get a total subsidy of up to Rs 2.5 lakh.

Take the example of the entry-level Tata Nexon EV whose price will effectively come down to Rs 11.50 lakh from Rs 13.99 lakh for the rest of the year.

For the four-wheelers, the scrappage incentive is Rs 25,000. But unlike the two-wheelers, there’s no incentive for the manufacturers.

Incentive for three-wheelers

In line with the base incentive of Rs 5,000 per kWh of battery, electric three-wheeler buyers can avail of a maximum subsidy of Rs 30,000 for a vehicle with a battery capacity of 6 kWh.

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