Telangana's newly unveiled electric vehicle (EV) policy has turned out to be a boon for vehicle buyers as it provides tax exemptions ranging between 1.4 lakh and 45 lakh on new electric vehicles, with premium cars receiving the maximum benefits.

Regional Transport Authority (RTA) levies a life tax between 13-18% on vehicles priced above 5 lakh, with the tax component varying based on the vehicle cost. However, the newly implemented policy offers 100% exemption from life tax and registration fee on purchase of new vehicles up to Dec 31, 2026.

"The electric vehicle policy aims to boost EV sales, with a particular focus on cars throughout the state. Under the EV policy 2020-30, road tax exemption was initially granted to 5,000 cars, with the quota later revised to 8,000 vehicles. However, sales saw a decline after the quota reached its limit. Now, with the state govt offering tax exemptions for electric vehicles without any limit, car registrations in the EV segment are expected to increase sharply in the coming days," joint transport commissioner C Ramesh told TOI.

The new EV policy, which came into force on Nov 18, offers 100% exemption on road taxes and registrations for electric two-wheelers, four-wheelers, taxis, tourist cabs, autos, buses, goods carriages, and tractors. These benefits would be available for vehicles registered in Telangana till 2026, without any limit on the number of registrations. At present, there are 1.7 lakh EVs — 1.3 lakh bikes and 12,765 cars — in the state.

Meanwhile, experts urged the state govt to launch campaigns to educate buyers on typical EV pricing and benefits under the new exemption. "The lifetime tax exemption for EVs is likely to boost consumer interest and confidence by reducing the overall cost of EV ownership. However, the govt must ensure that this benefit is not offset by unethical practices such as EV OEMs or dealers artificially inflating ex-showroom prices to capitalise on the incentive. We request the govt to establish a regulatory body to monitor and audit EV pricing trends pre- and post-implementation of the tax exemption to detect any unjustified price hikes," said Venugopal Rao Nellutla, a city-based electric mobility expert.

"E-bikes can also play a major role in improving the transport scenario and reducing oil dependency, particularly for shorter trips. Promotion of EVs, specifically electric buses and three-wheelers, provides a greener feeder mode to Metro transport and improves overall accessibility in a sustainable manner," said Prof Bandhan Bandhu Majumdar, department of civil engineering, BITS-Pilani, Hyderabad Campus.

Charging infrastructure

The state govt will establish 100 new EV charging stations in Hyderabad. Currently, the city boasts of over 400 public charging stations for electric vehicles. At present, there are 510 charging stations in the state, and of them, only 52 belong to the govt while the rest are private ones.

On the other hand, TSREDCO is encountering difficulties in identifying suitable land for new charging stations. Previously selected locations were found inappropriate as they lacked feasibility and public accessibility. Each EV station requires a minimum area of 500 square feet.