With the aim of electrifying more vehicles in the state, Maharashtra has introduced a new electric vehicle policy.
The 2021 Maharashtra electric vehicle policy is a revision of the policy that was introduced back in 2018. Maharashtra aims to be the highest producer of battery-powered electric vehicles in India and is aiming for EVs to make up 10 percent of all new vehicle registrations in the state by 2025. The government has announced that EVs will be exempt from road tax, registration charges and rolled out a Rs 930 crore policy that will be valid till 31 March 2025.
As part of the revised Maharashtra EV policy 2021, electric two-wheelers currently account for the largest share of incentives as part of the revised Maharashtra EV policy 2021, as the government expects them to make up 10 percent of all new vehicle registrations in the state by 2025. The state has set out guidelines that will offer a subsidy to the customers of the first 100,000 electric two-wheelers that are purchased. These customers will be eligible for an incentive of Rs 5,000 per kWh of battery capacity. This incentive limit goes up to Rs 10,000 which is twice the previously announced cap of Rs 5,000. Furthermore, there is an incentive of Rs 15,000 for an electric two-wheeler with a 3 kWh battery pack which is purchased before December 2021. This brings the total incentive benefit up to Rs 25,000.
With road tax and registration removed from the picture, on-road prices of EVs will be closer to the ex-showroom cost. There’s also a scrappage incentive of Rs 7,000 on offer. To save buyers the trouble of coordinating with government offices to receive their subsidy, all of the incentives will be handed directly to the manufacturers of these vehicles. Manufacturers of e-two-wheelers will additionally receive an incentive of up to Rs 12,000 if they provide a minimum five-year warranty on the battery and an assured buyback scheme.
Mr. Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV) said
“The announcement by the Maharashtra government is not only encouraging for the EV industry but also solidifies India’s vision of becoming a global EV hub. These much-awaited measures offer to bridge the chasm between awareness and consumer sentiment towards e-mobility. We hold steadfast optimism towards states announcing a revised policy with a special focus on demand creation. An inclusive and pragmatic approach to E-mobility and charging infrastructure is imperative to boost innovation and increase uptake among consumers. We thank the government for the EV Policy, which will create a positive impact and help in the acceleration of green vehicles in the state.”
Tarun Mehta, CEO, and Co-founder of Ather Energy said “The Maharashtra government’s new EV Policy is extremely comprehensive and has taken into account the entire EV ecosystem. The incentives offered for both the demand and supply side will accelerate the adoption and the manufacturing of EVs in the country. In addition to demand incentives, the policy also incentivizes buy-back and vehicle scrappage. Early bird incentive is a great mechanism to jump-start things, as well as to drive festive sales. Ather Energy is geared to cater to the rising demand in Maharashtra through its retail outlets in key cities like Mumbai, Pune and plans to expand to Nashik and Nagpur soon. Such progressive policies introduced by the state governments have the potential to drive faster adoption of electric vehicles in the country.”