The Maharashtra Government has announced a new promotion policy to increase the demand for electric vehicles (EVs) in the state. With that, Maharashtra has joined the likes of Delhi and Gujarat, having their individual state policy to promote the usage of EVs.
Benefits for customers
The government would offer owners of all sorts of electric vehicles incentives worth Rs 5,000 per kilowatt-hour of battery capacity under the new EV policy. It will also apply to all types of electric vehicle buyers. Within 30 days, the subsidy will be transferred directly to the recipients.
The scheme is valid till 31 March 2025. The government has also announced an early bird discount of Rs 5,000 per kilowatt-hour for those buying EVs by 31 December.
With the help of this policy, the Maharashtra government is expecting to increase the share of electric vehicles to 10% of all new vehicles sold in the state. It also aims to convert 25 percent of all last-mile logistics vehicles to be electric by 2025.
Boost for manufacturers
Apart from the monetary benefits to customers, the new policy also includes benefits to manufacturers. It offers incentives to manufacturers on extending a 5-year warranty for the batteries and assured buyback schemes. The policy also includes incentives for setting up 15,000 slow and 500 fast public chargers in the state.
The state also wants to attract at least one Gigafactory for the manufacturing of advanced cells. And it will provide benefits under the D+ category of mega projects to new EV and related manufacturing units set up in the state.
EVs gaining nation's attention
Before Maharashtra, Delhi and Gujarat governments have also announced incentives to increase the demand for EVs. The actions from the states have come on top of the centre’s FAME-II scheme. The central government increased incentives for electric two-wheelers (E-2Ws) from Rs 10,000/ kWh to Rs 15,000/ kWh with a cap at 40% of the cost of the vehicle.
EVs to get cheaper
Mass adoption of electric vehicles has remained substandard due to its high upfront cost when compared to traditional internal combustion engine (ICE) vehicles. The announced incentives are expected to significantly reduce the manufacturing cost, helping EVs to gain wider acceptance.
After the new EV policy, the cost of vehicles in Maharashtra would reduce drastically. Calculating the early bird discount till December 2021, prices of electric two-wheelers would stand to reduce by Rs 20,000-25,000 in the state.
Similarly, prices of EV cars and SUVs would also reduce drastically till December 2021. Prices of Tata Tigor EV and Tata Nexon EV XM will see their price drop by Rs 2 lakh if you are buying it before the end of December 2021.