Madhya Pradesh plans subsidies for Electric Vehicle (EV) Policy 2025

The Madhya Pradesh government has announced its EV Policy 2025, offering subsidies from ₹5,000 to INR 10 lakh for cars, two-wheelers, three-wheelers, cycles, and commercial vehicles. The five-year policy, currently in the draft stage, will complement central incentives under the PM E-Drive scheme (which excludes passenger cars). It will be funded through a 10 paise/litre pollution cess on diesel, higher road taxes on luxury fuel-based vehicles (INR 25 lakh+), and fines for green zone violations in Bhopal, Indore, Jabalpur, Gwalior, and Ujjain. The policy aims for 15% of new four-wheeler registrations, 40% for two-wheelers (100% in commercial fleets), 70% for three-wheelers, 40% for public and private buses, and 15% for light commercial vehicles by 2030, accelerating EV adoption and urban sustainability.

Electric two-wheelers priced under INR 1.5 lakh (ex-factory) can avail a subsidy of up to INR 10,000 per vehicle or INR 5,000 per kWh, for a maximum of 1,00,000 EVs. Regulatory benefits include a 100% exemption on motor vehicle tax and registration fees during the policy period. Additionally, EVs get free parking at Urban Local Body-run facilities for one year. A scrapping incentive of up to INR 5,000 is available for scrapping ICE two-wheelers, subject to OEM/dealer contribution and proof of de-registration.

Electric three-wheelers priced under INR 5 lakh (ex-factory) can avail a subsidy of up to INR 20,000 per vehicle or INR 5,000 per kWh, for a maximum of 15,000 EVs. Regulatory benefits include 100% exemption on motor vehicle tax, registration fees, and permit requirements, along with a 5% interest subvention on loans. Route-specific regulations will ensure balanced deployment and viable income opportunities. EVs get free parking at Urban Local Body-run facilities for one year. A scrapping incentive of up to INR 7,500 is available for scrapping ICE three-wheelers, subject to OEM/dealer contribution and proof of de-registration.

With the growing adoption of electric cars, the state aims to accelerate this transition for individuals and fleet operators. A subsidy of up to INR 50,000 per car (INR 2,500/kWh) is available for 10,000 EVs priced under INR 25 lakh (ex-factory). Regulatory benefits include 100% exemption on motor vehicle tax and registration fees, along with a mandate for government departments to transition to EVs under an 'EV-as-a-Service' model. EVs get free parking at Urban Local Body-run facilities for one year, and 25% of parking spaces in public, commercial, and government establishments must be reserved for EVs.

To promote electric LCV adoption, a subsidy of up to INR 50,000 per vehicle (INR 5,000/kWh) is available for 5,000 e-LCVs. Regulatory benefits include 100% exemption on motor vehicle tax and registration fees. Additionally, e-LCVs get free parking at Urban Local Body-run facilities for one year. This initiative aims to reduce emissions, lower operational costs, and improve urban air quality while supporting logistics and last-mile deliveries

Electric buses enhance urban mobility, reduce emissions, and lower costs. Public Transport SPVs must achieve 40% e-bus adoption by the policy’s end, with priority given to e-buses at depots and bus stands. Inter-city routes will connect major cities, and the government will support charging infrastructure in rural areas. Incentives include a 10% subsidy (up to INR 10 lakh) for 100 government and 100 non-government e-buses, a 5% interest subvention on loans for 20 or more e-buses, and a 100% exemption on motor vehicle tax.

Electric trucks and tractors are key to reducing transport emissions, with heavy vehicles contributing 43% of emissions and tractors consuming 8% of India’s oil. Madhya Pradesh will run two-year pilot projects for 20 zero-emission trucks (GVWR 5–55 tons) and 30 zero-emission tractors (20 hp/15 kW+). Eligible government departments, FPOs, and airports can participate, receiving a 20% subsidy (INR 10,000/kWh for trucks, up to INR 2.5 lakh for tractors). Data from these pilots will guide future incentives. Additionally, all registered zero-emission trucks and tractors will get a 100% exemption on road tax and registration fees.