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Madhya Pradesh's Draft EV Policy Proposes Subsidy for Four-Wheelers
ECONOMY & POLICY

Madhya Pradesh's Draft EV Policy Proposes Subsidy for Four-Wheelers

Madhya Pradesh has unveiled its draft Electric Vehicle (EV) Policy for 2025, offering a maximum subsidy of Rs 50,000 per four-wheeler electric vehicle as part of a broader push for EV adoption across the state. The policy, valid for five years, will cover both battery-powered and fuel-cell electric vehicles.

Key targets include making Bhopal, Indore, Jabalpur, Gwalior, and Ujjain model EV cities. The policy aims for 40% of new two-wheeler registrations to be electric, 100% of commercial fleets, 70% of e-three-wheeler registrations, 15% of e-four-wheeler registrations, and 40% of new electric buses. It also mandates converting all state government vehicles to electric.

Key features:

  • Regulatory exemptions: Electric commercial public transport vehicles and electric three-wheelers will have specific operating zone restrictions. Corporates can own and operate EVs for feeder transport, and retrofitting vehicles with electric powertrains will be allowed.
  • Subsidies: Various categories of electric vehicles, including cycles, two-wheelers, three-wheelers, four-wheelers, and light commercial vehicles, will be eligible for subsidies based on their ex-factory prices and battery capacities:
  • Electric cycles: Subsidy of up to Rs 5,000 for vehicles with an ex-factory price under Rs 40,000.
  • Electric two-wheelers: Subsidy of up to Rs 10,000 or Rs 5,000/kWh, whichever is lower, for vehicles under Rs 150,000.
  • Electric three-wheelers: Subsidy of up to Rs 20,000 or Rs 5,000/kWh, whichever is lower, for vehicles under Rs 500,000.
  • Electric four-wheelers: Subsidy of up to Rs 50,000 or Rs 2,500/kWh, whichever is lower, for vehicles under Rs 2.5 million.
  • Light commercial vehicles: Subsidy of up to Rs 50,000 or Rs 5,000/kWh, whichever is lower, for up to 5,000 vehicles.
  • E-Buses: Incentive of up to 10% of ex-factory price or Rs 1 million, whichever is lower, for up to 100 e-buses.
  • Charging infrastructure: Incentives will support the development of charging points, including rebates for residential buildings and commercial complexes. Agricultural land used for setting up charging stations under women’s ownership will also receive land conversion charge exemptions.
  • Incentives for manufacturing: The government will offer fixed capital investment subsidies for manufacturing units, as well as interest rebates on loans for EV-related industries.
  • Fixed capital investment: Up to 25% of FCI, with a cap of Rs 1.5 million for micro industries and Rs 200 million for mega industries.
  • Pilot projects: Pilot programs for EV trucks and tractors will provide subsidies to participants, encouraging innovation and testing in these segments. Subsidies will be up to Rs 10,000 or Rs 250,000, depending on the vehicle.
  • The policy also includes measures for parking incentives, toll tax exemptions, and funding sourced from pollution cess and levies on luxury vehicles. These initiatives aim to foster a sustainable EV ecosystem while significantly boosting local manufacturing and job creation.
  • (Mercom)

    Madhya Pradesh has unveiled its draft Electric Vehicle (EV) Policy for 2025, offering a maximum subsidy of Rs 50,000 per four-wheeler electric vehicle as part of a broader push for EV adoption across the state. The policy, valid for five years, will cover both battery-powered and fuel-cell electric vehicles. Key targets include making Bhopal, Indore, Jabalpur, Gwalior, and Ujjain model EV cities. The policy aims for 40% of new two-wheeler registrations to be electric, 100% of commercial fleets, 70% of e-three-wheeler registrations, 15% of e-four-wheeler registrations, and 40% of new electric buses. It also mandates converting all state government vehicles to electric. Key features: Regulatory exemptions: Electric commercial public transport vehicles and electric three-wheelers will have specific operating zone restrictions. Corporates can own and operate EVs for feeder transport, and retrofitting vehicles with electric powertrains will be allowed. Subsidies: Various categories of electric vehicles, including cycles, two-wheelers, three-wheelers, four-wheelers, and light commercial vehicles, will be eligible for subsidies based on their ex-factory prices and battery capacities: Electric cycles: Subsidy of up to Rs 5,000 for vehicles with an ex-factory price under Rs 40,000. Electric two-wheelers: Subsidy of up to Rs 10,000 or Rs 5,000/kWh, whichever is lower, for vehicles under Rs 150,000. Electric three-wheelers: Subsidy of up to Rs 20,000 or Rs 5,000/kWh, whichever is lower, for vehicles under Rs 500,000. Electric four-wheelers: Subsidy of up to Rs 50,000 or Rs 2,500/kWh, whichever is lower, for vehicles under Rs 2.5 million. Light commercial vehicles: Subsidy of up to Rs 50,000 or Rs 5,000/kWh, whichever is lower, for up to 5,000 vehicles. E-Buses: Incentive of up to 10% of ex-factory price or Rs 1 million, whichever is lower, for up to 100 e-buses. Charging infrastructure: Incentives will support the development of charging points, including rebates for residential buildings and commercial complexes. Agricultural land used for setting up charging stations under women’s ownership will also receive land conversion charge exemptions. Incentives for manufacturing: The government will offer fixed capital investment subsidies for manufacturing units, as well as interest rebates on loans for EV-related industries. Fixed capital investment: Up to 25% of FCI, with a cap of Rs 1.5 million for micro industries and Rs 200 million for mega industries. Pilot projects: Pilot programs for EV trucks and tractors will provide subsidies to participants, encouraging innovation and testing in these segments. Subsidies will be up to Rs 10,000 or Rs 250,000, depending on the vehicle. The policy also includes measures for parking incentives, toll tax exemptions, and funding sourced from pollution cess and levies on luxury vehicles. These initiatives aim to foster a sustainable EV ecosystem while significantly boosting local manufacturing and job creation. (Mercom)

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