Telangana has joined Maharashtra, Gujarat, Tamil Nadu, and Kerala in offering incentives to boost EV adoption. The state Minister for Transport and BC Welfare Ponnam Prabhakar has announced a 100 percent exemption on road tax and registration fees at the time of purchase of an electric vehicle.
- Exemption applies to two and four-wheelers, CVs, buses, and more
- Policy meant to help reduce pollution in Hyderabad
- EV charging infrastructure likely to see a boost in state
The exemption, which has been introduced in a bid to reduce air pollution in the state capital Hyderabad, will apply to electric two-wheelers and four-wheelers, along with commercial vehicles such as taxis, three-wheelers, light goods carriers, tractors, and buses. EVs used by the Telangana State Road Transport Corporation and e-buses used to transport private employees will have a total exemption from road tax and registration fees for the entire lifecycle of the vehicle.
The exemption will apply to new EVs sold until December 31, 2026, regardless of the number of vehicles sold. The minister also mentioned a corresponding increase in charging infrastructure is required to support the adoption of EVs. The move to waive off the registration and road tax should help boost sales of electric vehicles in the state.
This comes at a time when states like Karnataka – which offers incentives to EV makers but not directly to consumers – are mulling introducing a waiver road tax and registration charges for hybrids. Uttar Pradesh has already introduced this, with some dealers reporting a massive uptake in hybrid car sales.
Hormazd Sorabjee
Anurag Chaturvedi
