Electric Vehicle Subsidy Policy in Telangana 2024

The rapid growth in urbanization and the sudden increase in the number of vehicles on roads has led to an immediate need for a sustainable model for mobility to address the rising pollution & mobility costs. Electric Vehicles have emerged as one such transportation solution that serves the purpose in terms of sustainability and cost rationalization. Electric Vehicle technology integrations with the transport community make the promise even stronger.

In light of that, the Telangana government has come up with a subsidy policy to encourage people to adopt EVs. Launched in 2020, the Telangana State Electric Vehicle and Energy Storage Policy strives to create a policy structure for the development of an Electric Vehicle and Energy Storage Systems ecosystem. This policy is designed with the purpose of making Telangana the Electric Vehicle capital and Energy Storage Systems manufacturing hub of India by the year 2030.

Continue reading to learn more about the EV subsidy policy in Telangana.

Objectives of Electric Vehicle Subsidy in Telangana

• To make Telangana a hub for EVs.
• To ensure faster adoption of Electric Vehicles in the state.
• The policy also aims to achieve a substantial reduction in the total cost of transportation, supported by a world-class infrastructure.

Electric Vehicle Subsidy Policy in Telangana 2020-2030

EV subsidy incentives in Telangana shall be made available for electric two-wheelers, 3- wheelers, 4-wheelers, Light Commercial Vehicles, and Shared Transport & Public Transport. The subsidy benefits shall include a waiver on Road Tax and registration Charges. The EV subsidy policy is applicable for a period of 10 years from the date of notification of this policy.

In addition to the nationwide incentives offered under the FAME II subsidy, the Telangana government offers:

Subsidy Incentives for Electric 2-wheelers

The first two lakh electric 2-wheelers purchased & registered within Telangana will be exempted from paying road tax and registration fees.

A subsidy of approximately Rs. 3500 will be available on the purchase of PURE EV Scooters.

Subsidy Incentives for Electric Three-Wheelers (e-carts/rickshaws)

The first 2 lakh electric 3 Wheelers purchased & registered within Telangana will be exempted from paying road tax and registration fees.

A subsidy incentive of 15% will be available to electric three-wheelers capped at Rs. 15,000. First, 5000 electric 3-seater vehicles purchased and registered in Telangana will be incentivized.

Subsidy Incentives for Electric four-wheelers (Commercial Passenger Vehicles)

The first five thousand electric 4-wheeler commercial passenger vehicles (such as Taxis, Cabs, etc.) purchased & registered in Telangana will be 100% exempted from road tax and registration fees.

Subsidy Incentives for Light Goods Carriers

The first 10,000 Electric three-wheelers (goods), e-carriers as well and electric Light Goods carriers purchased & registered within Telangana will be exempted from road tax and registration fees.

Subsidy Incentives for Electric Private Cars

First, 5,000 Electric 4-wheeler private vehicles purchased & registered within Telangana will be exempted from paying road tax and registration during the policy period.

Latest Update:

Observing a large number of people shifting towards Electric Vehicles, Chief Minister of Telangana K Chandrashekhar Rao and Industries Minister KT Rama Rao have announced the exemption of road tax and registration fees for 2,000 more EV four– wheelers in addition to the previously decided 5,000 four-wheelers.

Subsidy Incentives for Electric Buses

The first 500 Electric buses purchased & registered within Telangana will be exempted from paying road tax and registration during the policy period.

Telangana government also encourages State Transport Units to purchase electric buses.

Subsidy Incentives for Electric Tractors

As per the existing guidelines applicable for tractors by the Transport Department, electric tractors purchased & registered within Telangana will be exempted from paying road tax and registration during the policy period.

Note: The state government of Telangana offers a 100% exemption on registration fees and road tax for battery-powered vehicles purchased and registered in the state. However, it does not provide any direct subsidy incentives except for the nationwide FAME incentive.

So, as of now, there is no dedicated EV portal in place to apply for the electric vehicle subsidy scheme. EV owners just to register their vehicle by visiting the RTO office or RTA site to claim the subsidy benefits.

Check Electric Vehicle Subsidy for other states