Incentivization of Electric Cars in Maharashtra to Promote EVs

Incentivization on Electric Cars in Maharashtra

With the increasing levels of pollution day by day, electric cars are becoming popular and the government is taking necessary steps to ensure that people switch to more environment-friendly options and do their bit. Incentivization of electric cars in Maharashtra is being done with a new policy in which the overarching aim is for EVs to contribute to 10 percent of new vehicle registrations – or 3,00,000 EVs – a year by 2025.


Maharashtra’s EV Policy

Here is a table which will help you understand the incentivization of electric cars in Maharashtra.

Vehicle Type Battery Capacity (kWh) Basic Incentives Early Bird Incentives Assured Buyback and Battery Warranty Incentives Scrappage Incentives Total Incentives
Electric two-wheelers (before December 31, 2021) 3 Rs 10,000 Rs 15,000 Rs 12,000 Rs 7,000 Rs 44,000
Electric two-wheelers (after December 31, 2021) 3 Rs 10,000 NA Rs 12,000 Rs 7,000 Rs 29,000
Electric three-wheelers (before December 31, 2021) 7 Rs 30,000 Rs 35,000 Rs 12,000 Rs 15,000 Rs 92,000
Electric three-wheelers (after December 31, 2021) 7 Rs 30,000 NA Rs 12,000 Rs 15,000 Rs 57,000
Electric four-wheelers (before December 31, 2021) 30 Rs 150,000 Rs 100,000 NA Rs 25,000 Rs 275,000
Electric four-wheelers (after December 31, 2021) 30 Rs 100,000 NA NA Rs 25,000 Rs 175,000


As per the policy, the Maharashtra government will offer basic as well as early bird incentives on the purchase of electric two-wheelers, three-wheelers and four-wheelers. This includes an incentive of Rs 5,000 per kWh of the vehicle battery capacity. For two-wheelers and three-wheelers, the maximum incentive has been capped at Rs 10,000 and Rs 30,000, respectively. Meanwhile, for four-wheelers the maximum incentive is capped at Rs 1.50 lakh.

Propelling EV Adaptation

The government should practice what they preach, only then will the people follow. Keeping this in mind, all new government vehicles in Maharashtra would be EVs from April 2022. Along with the earlier-mentioned target of 10 percent of new vehicle sales to be EVs, Maharashtra is targeting six urban cities (Mumbai, Pune, Nagpur, Aurangabad, Amravati and Nashik) to achieve 25 percent electrification of public transport and last-mile delivery vehicles by 2025.

This new EV Policy is helping in accelerating adaptation and registration of electric vehicles, including EV fleets owned by aggregators, last mile delivery providers, logistics players, etc. The policy will encourage fleet aggregators to operate electric vehicles, as per the Motor Vehicle Aggregator Guideline 2020 issued by Ministry of Road Transport and Highways.

Charging Infrastructure Development

Without the implementation of charging infrastructure, people will be sceptical in switching to an electric alternative. The government has kept this in mind and made sure to aggressively develop EV charging infrastructure, estimated at around 2,500 charging stations, in 7 major urban agglomerates (Mumbai, Pune, Nagpur, Aurangabad, Nashik, Amravati and Solapur) and 4 major highways (Mumbai -Pune, Mumbai – Nashik, Mumbai – Nagpur and Pune – Nashik).

There are incentives for the slow chargers (15000 units) and fast chargers (500 units) of Rs 10,000 per charger and Rs 500,000 per charger respectively. The government document states that “urban local bodies will be encouraged to provide property tax rebates to residential owners for installing private charging infrastructure within their premises.”

Benefits for EV Manufacturers

The EV Policy documents says that “all the benefits under ‘D+’ category of mega projects will be provided to these industries irrespective of location of manufacturing unit in the state. This incentive will be applicable from the date of notification of policy and will be disbursed through the Industries, Energy and Labour Department.

Implementation of Policy

A Mechanism Steering Committee under the chairmanship if Chief Secretary has been instituted to revise the policy and keep a check on its effectiveness along with Climate Change Department which will constitute the ‘EV Monitoring Cell’.

Also Read – Hike in Electric Vehicles Sales in Gujarat Speaks the Bright Future of EV in India

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