In a push to strengthen its electric vehicle (EV) ecosystem, the Uttar Pradesh government has decided to restrict EV incentives exclusively to vehicles that are both manufactured and registered within the state, effective from 14 October.

The move is part of the amended UP Electric Vehicle Manufacturing Policy 2022, designed to promote ‘Made in UP’ vehicles, generate local employment, and attract investment in both greenfield and brownfield EV plants. The revised policy will remain in force until 13 October 2027.

Under the updated framework, incentives will only apply to EVs produced, sold, and registered in Uttar Pradesh. Transport Commissioner B. N. Singh stated that the policy aims to consolidate the state’s position as a leading EV manufacturing hub.

Previously, the state provided incentives of up to Rs 2 million depending on the vehicle type — Rs 5,000 for two-wheelers, Rs 100,000 for four-wheelers and electric goods carriers, and Rs 2 million for buses. So far, 17,665 buyers have received subsidies, while 38,285 applications are still pending. The state has also disbursed around Rs 9.5 billion in subsidies to promote its electric mobility roadmap.

In FY25, Uttar Pradesh recorded 370,000 EV sales, overtaking Maharashtra (240,000), Karnataka (170,000), and Tamil Nadu (132,000). The UP State Road Transport Corporation (UPSRTC) aims to expand its bus fleet from 13,000 to 25,000 by 2027. To support this, electric depots equipped with 240 kW universal chargers are being established in eight cities.

Additionally, the state is developing 23 modern bus terminals through public-private partnerships, with 54 more terminals planned in the next phase — 50 of which are already under construction.

To strengthen EV infrastructure, the Uttar Pradesh State Industrial Development Authority (UPSIDA) has partnered with Central Electronics Limited (CEL) to establish EV charging stations in industrial zones, powered by renewable energy sources.