Over the last decade, the demand for electric vehicles (EVs) has been rapidly increasing in the country. Therefore, the central government has been introducing various schemes to promote the electric vehicle market to reduce the dependence on vehicles that run on fossil fuels.
In line with that, the government of Madhya Pradesh has also been actively sponsoring EV subsidy programs to shift the traditional transport system into electric mobility. Introduced in 2019, the Electric Vehicle Initiative (EVI) under Madhya Pradesh’s EV policy aims to accelerate the deployment of sustainable electric mobility in the state. It promotes better air quality, reduces greenhouse gas emissions from the transport sector, low carbon power generation, and enhances energy security.
The Madhya Pradesh EV subsidy policy seeks to fasten the adoption of Electric Vehicles (EVs) in a manner where it contributes to 25% of all new public vehicle registrations by the year 2026.
Let us now have a comprehensive look at the Electric Vehicle Subsidy Policy in Madhya Pradesh.
Electric Vehicle Purchase Incentive in Madhya Pradesh
To enable faster adoption of EVs in Madhya Pradesh by ensuring safe, reliable, accessible, and affordable, the state government offers the following incentives.
Two Wheelers Purchase Incentive
- The first 15000 electric two-wheelers (or total e-2 wheelers in 5 years, whichever is less) purchased and registered within the state will be charged 1% motor vehicle tax.
- The first 22,500 electric two-wheelers or total electric two-wheelers in 5 years, whichever is less, registered in Madhya Pradesh will be exempted from paying vehicle registration charges.
- All electric two-wheelers (e-bikes and e-scooters) registered in Madhya Pradesh will be provided with a 100% waiver on parking charges at any Urban Local Body (municipality, cantonment board, etc.) run parking lot for a policy period of 5 years.
Three Wheelers (Shared E-Rickshaws) Purchase Incentive in Madhya Pradesh
- The first 5000 Shared E-Rickshaws sold in the state or the total Shared E-Rickshaws sold in 5 years, whichever is less, will be charged 1% motor vehicle tax in MP.
- First 7500 Shared E-Rickshaws or total Shared E-Rickshaws during 5 years, whichever is less, will be exempted from paying vehicle registration fees.
- All Shared E-Rickshaws registered in Madhya Pradesh during the policy period will be provided a 100% waiver on parking charges at any Urban Local Body-run parking facility.
Three Wheelers (Electric Auto Rickshaws) Purchase Incentive in Madhya Pradesh
- The first 5000 Electric Auto-Rickshaws or total Electric Auto-Rickshaws in 5 years, whichever is less, will be charged 1% motor vehicle tax.
- First 7500 Shared E-Rickshaws or total Shared E-Rickshaws during 5 years, whichever is less, will be exempted from paying vehicle registration fees.
- All Electric Auto-Rickshaws will be provided with a 100% waiver on parking charges at any Urban Local Body parking facility for an initial period of 5 years.
Electric Goods Carriers (3-Wheeler) Purchase Incentive in Madhya Pradesh
- The first 2000 Electric Three-Wheeler Goods Carrier or total electric three-wheeler goods carriers in 5 years, whichever is less, will be charged 1% (One Percent) motor vehicle tax.
- The first 3000 Electric three goods carriers or total Electric three-wheeler goods carriers in 5 years, whichever is less, will be free from paying any vehicle registration charges.
- All Electric three goods carriers will be provided with a 100% waiver on parking charges at any ULB-run parking facility for a policy period of 5 years.
Electric Car Purchase Incentive in Madhya Pradesh
- The first 6000 electric cars or total electric cars (whichever is less) purchased in the state in 5 years, will be charged with only 1% motor vehicle tax.
- The first 9000 Electric cars or total Electric cars in 5 years, whichever is less, will be free from paying any vehicle registration charges.
- All electric four-wheelers will be provided a 100% waiver on parking charges at any town area committee-run parking lot/facility for five years.
- The EV subsidy incentives will be only available for electric cars that fulfil the FAME India eligibility criteria.
Electric Buses Purchase Incentive in Madhya Pradesh
- The first 1,500 electric buses or total electric buses (whichever is less) purchased in the state in 5 years will be charged with only 1% motor vehicle tax.
- The first 2250 Electric three goods Carrier or total Electric three-wheeler goods Carrier in 5 years, whichever is less, will be free from paying any vehicle registration charges.
Motor Vehicle tax, registration charges, and Urban Local Body parking fees will be exempted for all other electric vehicles that are eligible under FAME India demand incentives. The waiver will apply for the period of this subsidy policy, i.e. 2019 – 2023.
How to apply for EV subsidy policy in Madhya Pradesh?
As of now, there is no dedicated portal designed for EV subsidy policy in Madhya Pradesh where customers can apply for scheme incentives. EV owners can register themselves at the dealer end only to avail of the subsidy benefits.
An online portal will be available soon for providing information regarding EVs, applying for EV-related incentives, getting information regarding charging infrastructure, etc.