The Maharashtra government has made a major decision regarding electric vehicles (EVs) by withdrawing the 6% sales tax that was proposed for electric cars.
This decision aims to encourage more people to purchase EVs, as the market for electric vehicles is still in its early stages in India.
No Tax on EVs Below ₹30 Lakh
Electric vehicles in Maharashtra will now be exempt from taxes, but this applies only to EVs that are priced below ₹30 lakh.
EVs that cost more than ₹30 lakh will still be subject to tax.
Maharashtra currently makes up 15% of India’s total electric vehicle sales.
Boosting EV Sales in India
India is the third-largest car market in the world, and the government’s decision is expected to help boost the sales of electric cars.
The EV market in India is still small, with only about 2% of the 40 lakh cars sold last year being electric. This low percentage is due to high prices and the limited availability of charging stations.
Target for 30% EV Sales by 2030
The Maharashtra government’s goal is to increase the share of electric vehicles in total car sales from 2% to 30% by 2030.
The government hopes this tax exemption will help reach that target by making EVs more affordable and encouraging consumers to switch to electric cars.
Tesla and Local Competitors in Maharashtra
This decision comes just as global EV giant Tesla is preparing to enter the Indian market.
Tesla will compete with domestic EV manufacturers like Mahindra & Mahindra and Tata Motors, who already produce electric vehicles in Maharashtra.
Hyundai and Toyota are also planning to build new factories in the state to manufacture electric vehicles.
Maharashtra to Become the Hub of EV Manufacturing
Chief Minister Devendra Fadnavis stated that with new manufacturing facilities being set up, Maharashtra is set to emerge as the national capital for electric vehicles.
