Electric Vehicles Likely to Get Registration Fee Exemption

The ministry will introduce measures to introduce differential registration fees as per the Central Motor Vehicles Rules


The Ministry of Road Transport and Highways (MORTH) has put forward a proposal to relieve electric and battery-operated vehicles from registration charges.

This move comes at a time when the government of India (GoI) is taking strong measures to chart out a framework for a smoother transition to electric vehicles. The Society of Manufacturers of Electric Vehicles (SMEV) has stated that a total of 759,000 units of EVs were sold in India in the financial year (FY) 2018-19.

The ministry will introduce measures to introduce differential registration fees as per the Central Motor Vehicles Rules (CMVR), 1989.

The draft notification will modify Rule 81 of the CMVR. The new amendment states that battery operated vehicles will be exempt from paying fees for the issue and renewal of a registration certificate and assignment of a new registration mark. This means that the electric vehicles will be relieved from registration charges. The draft is open to suggestions from stakeholders.

The National Electric Mobility Mission Plan (NEMMP) 2020 launched in 2013 was the government’s initiative to promote the use of hybrid and electric vehicles. The purpose of the mission was to provide fuel security by reducing dependence on oil imports that are predominantly used by the automobile industry.  This will also assist in tackling air pollution and related issues.

The government launched a program called ‘Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles’ (FAME India) which was launched under NEMMP 2020 which aims to accelerate the smooth implementation of hybrid and electric vehicles under all categories in India.  Recently, the government announced the second phase of FAME with a budget of ₹100 billion ($1.41 billion) which will be executed over three years from April 1, 2019.

Moreover, the Finance Ministry approved ₹40 billion (~$0.58 billion) as a subsidy that will be spent under phase II of the FAME India program. This phase will entail subsidies exclusively for electric buses and for setting up charging infrastructure across all vehicle segments.

Recently, the government of India’s policy think tank, NITI Aayog, charted a roadmap that will facilitate the clean mobility transition. According to the think tank’s proposal, only electric two and three wheelers will be sold post-2025, and the electric vehicle transition will encompass all vehicle categories after 2030. Measures are also being taken to promote domestic manufacturing of batteries to reduce vehicle costs.

The Confederation of Indian Industry had recently called stakeholders from across the transportation and renewable energy sectors for a consultation on the future of intelligent mobility in the country. CII announced that it would focus on setting goals, working on the technology, and affordability of vehicles for consumers as India is looking to achieve its goals of transportation based on energy choices.

In August last year, NITI Aayog and the CII entered into a partnership for the sustainable development of India. CII and NITI Aayog have entered into a three-year partnership, and a memorandum of understanding was also signed. This partnership focuses on specific activities that aim to develop a vision and action agenda for businesses and industries to contribute to SDGs, annual status reports, and sector-specific best practice documents.