Maharashtra’s EV policy promotes demand

With the intention of enhancing the presence of electric vehicles in the state of Maharashtra, the state government has revised its earlier EV policy launched in 2018 and introduced Maharashtra EV policy 2021. The Rs 930 crore policy intends to make Maharashtra the “topmost producer of battery-powered electric vehicles in India” (basis annual production capacity) and seeks to ensure that electric vehicles (EVs) constitute 10% of all new vehicle registrations – around three lakh vehicles a year – in the state by 2025.

The maximum subsidy offered by the government is on electric two-wheelers; the first 100,000 EVs are eligible for an incentive of Rs 5,000 per kWh of battery capacity (incentive limit: Rs 10,000; twice the previous cap of Rs 5,000). It is also providing an early bird incentive of up to Rs 15,000 (for an e-two-wheeler with a 3 kWh battery) for those who purchase the two-wheeler before 31 December, 2021. A scrappage incentive of Rs 7,000 is also being offered. It is also offering some incentives to EV producers. Manufacturers of e-two-wheelers will get an additional incentive of up to Rs 12,000 for providing a minimum five-year warranty on the battery and an assured buyback scheme.