The Maharashtra state government has announced a range of incentives across categories for the purchase of electric vehicles (EVs) under the Maharashtra Electric Vehicle Policy for 2025.

The policy targets every one in three vehicles registered to be an EV by 2030.

It offers an incentive of a maximum of ₹2 million (~$23,502.8)/vehicle in the passenger bus/goods carrier category. Electric two-wheelers and three-wheelers will get a purchase incentive of ₹10,000 (~$117.52) and ₹30,000 (~$352.57) for the first 100,000 and 15,000 vehicles, respectively.

Electric cars will be eligible for a purchase incentive of ₹150,000 (~$1762.84) for the first 10,000 vehicles.

The policy, which will be valid for five years, aims to accelerate EV adoption across all vehicle segments and ensure widespread charging infrastructure to support it.

The policy also plans to reduce vehicular particulate matter (PM) 2.5 emissions in the state. It is estimated that Maharashtra will be able to reduce 325 tons of vehicular PM 2.5 emissions and approximately 1 million tons of greenhouse gas emissions from the transport sector by 2030.

The state’s Transport Department will be the designated nodal agency for the policy.

Under these targets, 40% of all new two-wheelers must be EVs, and electric four-wheelers will comprise 30% of all new four-wheeler registrations.

These incentives will be valid only for vehicles either manufactured for sale in Maharashtra or registered for sale in the state.

The original equipment manufacturer will avail the incentives and pass them on to the end consumer.

The incentives will be disbursed as a percentage of the vehicle’s ex-factory price. They will also be applicable for selling EVs without transferring battery ownership.

All EVs sold under the policy period will be completely exempted from motor vehicle tax.

There will also be a 100% toll tax exemption for passenger EVs commuting on state highways such as Yashwantrao Chavan Mumbai-Pune Expressway, Hindu Hrudaysamrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg, Atal Bihari Vajpayee Sewri–Nhava Sheva Atal Setu.

Phased toll waivers for electric vehicles on other state highways are currently under discussion.

Charging Infrastructure

The policy includes the installation of EV charging infrastructure every 25 km along state and national highways.

It mandates all existing and new fuel pumps on state and national highways to have at least one fast charging station. The same requirement also extends to all Maharashtra State Road Transport Corporation bus stations.

The state will also release viability gap funding for DC fast charging station installations to incentivize establishing EV charging infrastructure across highways.The state’s Energy Department will create a nodal agency to develop an integrated EV charging infrastructure plan. It will categorize EV charging stations based on renewable energy usage and availability of battery energy storage systems.

The concessional tariff for all EV charging and battery swapping stations will follow the tariff structure issued by the Maharashtra Electricity Regulatory Commission.

The state government will establish a one-window online system/portal to provide charging infrastructure approvals.

Building Code Amendments

Under the Ministry of Housing and Urban Affairs guidelines, the state government has mandated that all new residential buildings have 100% EV-compliant parking spaces.

Each new residential building must allocate at least one dedicated community EV charging point.

Existing housing societies must allocate shared EV charging stations if at least 50% of the housing society members approve of this dedicated allocation.

Under these rules, all new commercial buildings must also allocate at least 50% of their parking spaces for EV charging.

The Mumbai – Pune Expressway and Mumbai – Nagpur Samruddhi will be built as a sustainable mobility corridor. It will comprise charging infrastructure for all EV types. Deploying hydrogen vehicles on the Pune-Mumbai Expressway on pilot routes is also targeted.

Battery Recycling

To attract investments for EV manufacturing, the state government will provide all benefits under the D+ category of mega projects/other categories for industries, including micro, small, and medium enterprises. These companies can be part of the EV battery and component manufacturing sector, irrespective of their manufacturing location in the state.

The state will encourage setting up EV battery recycling hubs closer to EV battery manufacturing hubs and EV charging infrastructure.

Urban local bodies will designate convenient drop-off points for used EV batteries. They will also identify and earmark the land for drop-off spots near the solid waste disposal and processing sites for battery segregation.

They can also collaborate with nearby and existing battery recycling facilities to bolster battery recycling.

Research and Development

To encourage R&D in the state, at least three centers of excellence will be developed, focusing on EVs, charging infrastructure, and hydrogen-based technologies.

The government has earmarked ₹150 million (~$1.76 million) under the “CM EV R&D Grant” to fund R&D activities in the EV sector.

The Maharashtra government will also develop specialized courses for EV design, battery technology, charging infrastructure, power electronics, and energy management.

The Transport Department will establish a network of automated testing stations for EVs to conduct standardized safety assessments.

The state government will also develop a digital battery passport to track key parameters such as manufacturing details, real-time health status, usage history, and end-of-life diagnostics.

According to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard in January 2025, Maharashtra had the second-highest EV sales in the country.

In September 2024, the Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement Program, with a total outlay of ₹109 billion (~$1.29 billion).

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