Maharashtra Electric Vehicle Policy 2025–2028: Key Highlights, Benefits, and Subsidies

The Maharashtra Electric Vehicle (EV) Policy 2025–2028, effective from April 1, 2025, to March 31, 2030, marks a significant step toward promoting sustainable transportation and reducing carbon emissions in one of India’s most industrialized states. With a financial outlay of ₹1,993 crore, the policy aims to accelerate EV adoption, bolster local manufacturing, and establish Maharashtra as a leading hub for electric mobility in India. This comprehensive framework introduces a range of incentives, subsidies, and infrastructure initiatives to make EVs more accessible and appealing to consumers, fleet operators, and manufacturers. Below, we explore the key highlights, benefits, and subsidies of the Maharashtra EV Policy 2025–2028, analyzing its potential impact on the state’s transportation landscape and its contribution to India’s broader clean mobility goals.

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Evolution and Progress of EV Adoption in Maharashtra

Maharashtra has been a pioneer in electric vehicle adoption in India, being among the first states to implement an EV policy in 2018, followed by an updated version in 2021. The 2021 policy set ambitious targets, such as achieving 10% EV penetration in new vehicle registrations by 2025 and electrifying 25% of public transport and last-mile delivery in key urban areas. The state has made significant strides, with 246,221 EVs registered by early April 2025, accounting for 12.52% of India’s EV market. Notably, electric two-wheelers led with 211,880 units sold, while electric cars and buses also showed strong growth, with 17,133 and 2,104 units sold, respectively.

Maharashtra Electric Vehicle Policy

Building on this momentum, the 2025–2028 policy expands its scope to cover 13 vehicle categories, up from five in the previous policy, and introduces innovative measures to address barriers to EV adoption, such as high upfront costs, limited charging infrastructure, and end-of-life battery management.

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Key Highlights of the Maharashtra EV Policy 2025–2028

The Maharashtra EV Policy 2025–2028 is designed to create a robust ecosystem for electric mobility by addressing demand-side incentives, infrastructure development, manufacturing, and sustainability. Below are the key highlights:

Ambitious EV Adoption Targets

The policy sets a bold target of achieving 25–30% EV penetration in new vehicle registrations by 2030, a significant increase from the 10% goal of the 2021 policy. This includes:

Electrification of Public Transport: The policy aims to electrify 25% of public transport and last-mile delivery vehicles in six targeted urban agglomerations—Mumbai, Pune, Nagpur, Nashik, Aurangabad, and Amravati—by 2025, with further expansion by 2030.
State Transport Fleet: The Maharashtra State Road Transport Corporation (MSRTC) is mandated to convert 25% of its existing bus fleet to electric, building on the 2,104 electric buses already registered by April 2025.
Government Vehicles: From April 2022, all new government vehicles in Maharashtra have been electric, and this mandate continues under the new policy, ensuring a fully electric government fleet by 2030.

Comprehensive Subsidy Framework

To make EVs more affordable, the policy offers segment-wise purchase incentives, tax exemptions, and toll waivers. These financial incentives are available on a first-come, first-served basis for pre-approved vehicle models and cover a wide range of vehicle types, including two-wheelers, three-wheelers, four-wheelers, buses, goods carriers, and agricultural vehicles like electric tractors.

Bright Bus Initiative Maharashtra

Charging Infrastructure Development

A critical enabler of EV adoption is a robust charging network. The policy mandates the establishment of charging stations every 25 km along national highways and in urban clusters, ensuring accessibility for long-distance and intra-city travel. Key initiatives include:

Capital Subsidies for Charging Stations: Commercial public EV charging stations are eligible for a 15–25% capital subsidy on equipment and machinery, capped at ₹10 lakh per station for the first 250 stations. High-power DC fast-charging stations (250–500 kW) for e-buses and heavy-duty vehicles are also subsidized.
Unified Energy Interface (UEI): The policy introduces UEI, based on the Beckn Protocol, to create an interoperable digital charging network. This ensures seamless access to charging stations across apps and networks, reducing fragmentation for users and operators.
Vehicle-to-Grid (V2G) Integration: A pilot program for V2G technology allows parked EVs to return power to the grid, creating a potential revenue stream for fleet operators during off-peak hours.

Support for Local Manufacturing

Maharashtra aims to become India’s top producer of battery electric vehicles (BEVs) by establishing at least one gigafactory for advanced chemistry cell (ACC) batteries. The policy offers:

Incentives for Manufacturers: EV manufacturers and component suppliers receive benefits under the ‘D+’ category, including 100% reimbursement on stamp duty, transfer duty, and registration fees for the first transaction, and 50% for the second. Additional incentives include transportation subsidies (60% with a 10% yearly reduction, capped at ₹5 crore), patent filing assistance, and quality certification cost reimbursement.
R&D and Skill Development: The policy promotes research and development (R&D) by providing incentives for setting up R&D facilities and skill enhancement centers. The Maharashtra State Board of Technical Education (MSBTE) and Maharashtra State Skill Development Society (MSSDS) will offer training-based certification and placement programs for EV-related skills, targeting mechanics, technicians, and engineers.

Maharashtra Lek Ladki Yojana

Sustainable End-of-Life Management

Recognizing the environmental impact of EV batteries, the policy assigns the Urban Development Department to establish dedicated domains for recycling aging EV batteries. This promotes a circular economy, ensuring sustainable end-of-life management and reducing the ecological footprint of EVs.

Clean Mobility Transition Model

The policy introduces a Clean Mobility Transition Model, extending incentives to EV buyers until 2030. This long-term vision aims to reduce carbon emissions, greenhouse gases, and air pollution from the transport sector, aligning with India’s national goal of 30% EV penetration by 2030.

Subsidies and Financial Incentives

The Maharashtra EV Policy 2025–2028 offers a range of financial incentives to reduce the upfront cost of EVs and make them competitive with internal combustion engine (ICE) vehicles. Below is a detailed breakdown of the subsidies and exemptions:

Purchase Subsidies

Electric Two-Wheelers and Three-Wheelers: A 10% subsidy on the ex-factory price, capped at ₹25,000 for two-wheelers and ₹30,000 for three-wheelers. This applies to models meeting FAME II eligibility criteria, such as a minimum range of 80 km and a top speed of 40 km/h.
Electric Four-Wheelers: A 10% subsidy, capped at ₹2.5 lakh for private four-wheelers and up to ₹20 lakh for passenger buses registered in the state.
Goods Carriers and Agricultural Vehicles: A 15% subsidy for electric goods carriers, tractors, and combine harvesting machinery, with a maximum cap of ₹1.5 lakh for tractors. This is particularly significant for rural applications, where electric tractors can reduce fuel costs by 60–70% compared to diesel counterparts (₹300 vs. ₹1,200–₹1,500 per acre).
State and Civic Transport Buses: A 10% subsidy for state transport corporation buses and civic body-operated vehicles, enhancing affordability for public transport operators.

Tax and Fee Exemptions

Motor Vehicle Tax: 100% exemption for all EVs registered in Maharashtra during the policy period.
Registration and Renewal Fees: Full waiver of registration and renewal fees, as per the Ministry of Road Transport and Highways (MoRTH) notification of 2019.
Toll Tax Exemptions: Passenger EVs, including four-wheelers and buses, receive a 100% toll waiver on major expressways such as the Mumbai-Pune Yashwantrao Chavan Expressway, Atal Bihari Vajpayee Shivdi-Nhava Sheva Atal Setu, and Hindu Hriday Samrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg. On other state highways, tolls are halved, providing significant savings for fleet operators.

Scrappage Incentives

The policy includes scrappage incentives to encourage the replacement of ICE vehicles with EVs. These incentives are reimbursed by the government upon evidence of scrappage and a matching contribution from dealers or original equipment manufacturers (OEMs). This aligns with the policy’s goal of reducing emissions by phasing out older, polluting vehicles.

Interest-Free Loans

Through the Annasaheb Patil Arthik Vikas Mahamandal, the policy offers interest-free loans for EV purchases, particularly for agricultural vehicles like electric tractors, further reducing the financial burden on buyers.

Objectives of the Maharashtra Electric Vehicle Policy 2025–2028

The Maharashtra Electric Vehicle Policy 2025–2028 is designed to accelerate the adoption of electric vehicles (EVs), promote sustainable transportation, and establish Maharashtra as a leading hub for electric mobility in India. The policy outlines clear objectives to drive economic, environmental, and societal benefits. Below are the key objectives:

Achieve High EV Penetration: Target 25–30% EV penetration in new vehicle registrations by 2030, expanding from the 10% goal of the 2021 policy, to significantly reduce reliance on internal combustion engine (ICE) vehicles.

Promote Public Transport Electrification: Electrify 25% of public transport and last-mile delivery vehicles in six key urban agglomerations (Mumbai, Pune, Nagpur, Nashik, Aurangabad, and Amravati) by 2025, with further expansion by 2030, and convert 25% of the Maharashtra State Road Transport Corporation (MSRTC) bus fleet to electric.

Develop Robust Charging Infrastructure: Establish charging stations every 25 km along national highways and in urban clusters, supported by capital subsidies and a Unified Energy Interface (UEI) to ensure seamless, interoperable access to charging networks.

Boost Local EV Manufacturing: Position Maharashtra as India’s top producer of battery electric vehicles (BEVs) by incentivizing the establishment of at least one gigafactory for advanced chemistry cell (ACC) batteries and offering financial incentives for manufacturers and component suppliers.

Reduce Financial Barriers to EV Adoption: Provide segment-wise purchase subsidies, 100% exemptions on motor vehicle tax, registration fees, and tolls, and interest-free loans to make EVs affordable for consumers, fleet operators, and farmers.

Promote Sustainable End-of-Life Management: Establish dedicated domains for recycling aging EV batteries to ensure environmentally responsible disposal and foster a circular economy.

Support Research, Development, and Skill Development: Encourage innovation through incentives for R&D facilities and establish training programs via the Maharashtra State Board of Technical Education (MSBTE) and Maharashtra State Skill Development Society (MSSDS) to build a skilled workforce for the EV ecosystem.

Reduce Carbon Emissions and Air Pollution: Facilitate a clean mobility transition by phasing out older ICE vehicles through scrappage incentives and promoting EVs to lower greenhouse gas emissions and improve air quality in urban and rural areas.

Create Economic Opportunities: Generate 20,000 jobs by 2025 through EV manufacturing, charging infrastructure development, and shared mobility initiatives, contributing to economic growth and investment in the state.

Integrate Advanced Technologies: Pilot vehicle-to-grid (V2G) technology to enable EVs to supply power to the grid, creating new revenue streams for fleet operators and supporting grid stability.

Benefits of the Maharashtra EV Policy 2025–2028

The policy’s multifaceted approach delivers benefits to various stakeholders, including individual consumers, fleet operators, manufacturers, and the environment. Below are the key benefits:

Benefits for Consumers

Cost Savings: Subsidies, tax exemptions, and toll waivers significantly reduce the upfront and operational costs of EVs. For example, electric two-wheelers and four-wheelers become more affordable with subsidies of up to ₹25,000 and ₹2.5 lakh, respectively, while toll exemptions save daily commuters substantial amounts.
Accessibility: The expansion of charging stations every 25 km and the UEI-based interoperable network address range anxiety, making EVs practical for both urban and long-distance travel.
Sustainable Living: By incentivizing EVs, the policy enables consumers to contribute to reduced air pollution and greenhouse gas emissions, promoting a cleaner environment.

Benefits for Fleet Operators and Businesses

Lower Operating Costs: Toll waivers and subsidies for commercial vehicles like buses and goods carriers reduce operational expenses. The V2G pilot program offers fleet operators a potential revenue stream by selling excess power back to the grid.
Infrastructure Support: Capital subsidies for charging stations and single-window approvals streamline the process for charge point operators (CPOs), encouraging investment in charging infrastructure.
Scalability: The policy’s focus on urban clusters and highways supports fleet operators in scaling EV adoption for last-mile delivery and intercity transport.

Benefits for Manufacturers and Investor

sIncentives for Growth: Financial incentives like stamp duty exemptions, transportation subsidies, and R&D support attract domestic and foreign investment in EV manufacturing and component production.
Job Creation: The policy targets the creation of 20,000 jobs by 2025 through EV manufacturing, charging infrastructure, and shared mobility, boosting the state’s economy.
Innovation Ecosystem: Support for R&D and skill development fosters innovation, positioning Maharashtra as a hub for advanced EV technologies.

Environmental and Societal Benefits

Reduced Emissions: By promoting EVs and phasing out ICE vehicles, the policy aims to significantly reduce carbon emissions and air pollution, aligning with India’s climate goals.
Sustainable Agriculture: Subsidies for electric tractors and agricultural vehicles support farmers by lowering fuel and maintenance costs, contributing to sustainable rural development.
Circular Economy: Dedicated battery recycling domains ensure responsible end-of-life management, minimizing environmental harm.

Challenges and Considerations

While the Maharashtra EV Policy 2025–2028 is ambitious, several challenges must be addressed to ensure its success:

Implementation: The first-come, first-served subsidy model may limit access for late adopters, requiring careful monitoring to ensure equitable distribution.
Infrastructure Gaps: While the policy mandates charging stations every 25 km, rapid deployment and maintenance of these stations are critical to meeting demand.
Awareness and Adoption: Educating consumers, especially in rural areas, about EV benefits and subsidies is essential to drive adoption.
Grid Capacity: The integration of V2G technology and widespread EV charging requires upgrades to the state’s power grid to handle increased demand.

Latest Updates to the Maharashtra EV Policy 2025–2028

Increased Financial Outlay and Expanded Scope:

The policy has a significantly increased budget of ₹1,993 crore, a 114% rise from the ₹930 crore allocated for the 2021 policy, reflecting a stronger commitment to EV adoption.
The number of eligible vehicle categories has expanded from five to thirteen, now including corporate and municipal utility vehicles, trucks, private buses, heavy commercial vehicles, trailers, dumpers, and agricultural vehicles like electric tractors and combine harvesters.

Revised EV Penetration Targets:

The policy aims for 30% EV penetration in new vehicle registrations by 2030, up from the 10% target of 2021. Specific targets include:

40% for electric two-wheelers (L1 & L2) and passenger three-wheelers (L5M).
30% for electric goods three-wheelers (L5N) and four-wheelers (M1).
25% for light goods carriers (N1).
20% for heavy goods carriers (N2, N3).
40% of State Transport Undertaking (STU) bus fleets in six urban agglomerations (Mumbai, Pune, Nagpur, Nashik, Chhatrapati Sambhaji Nagar, and Amravati) to be electric.
Additionally, 50% of aggregator cabs and 15% of private buses are targeted to be electric by 2030.

Enhanced Subsidies and Incentives:

Purchase Incentives: A ₹1,740 crore fund supports subsidies for up to 1.75 lakh EVs. Subsidies include:
10% on ex-factory price for two-wheelers (up to ₹10,000), three-wheelers (up to ₹30,000), private four-wheelers, STU buses, private buses, and municipal buses.
15% for electric goods-carrying three- and four-wheelers, tractors, and combine harvesters (up to ₹1.5 lakh for tractors).
For transport/commercial four-wheelers, incentives up to ₹2 lakh (previously ₹1.75 lakh for private cars, now limited to commercial vehicles) and ₹20 lakh for e-buses, covering 25,000 four-wheelers and 1,500 buses.
Scrappage Incentives: Incentives for scrapping ICE vehicles are reimbursed through OEMs, with buyers providing consent for verification.
Tax and Toll Exemptions: 100% exemption on motor vehicle tax, registration, and renewal fees for all EVs registered during the policy period. Passenger EVs and buses enjoy 100% toll waivers on major expressways (Mumbai-Pune, Mumbai-Nagpur Samruddhi Mahamarg, Atal Setu) and 50% on other state highways.

Charging Infrastructure Enhancements:

Mandatory Charging Stations: Fast-charging stations are required at fuel pumps, Maharashtra State Road Transport Corporation (MSRTC) stations, and one per government office complex. Charging stations must be installed every 25 km on state and national highways.
Viability Gap Funding (VGF): Up to ₹10 lakh per DC fast-charging station (15–25% capital subsidy, excluding land costs) for the first 250 stations, with support for high-power chargers (250–500 kW) for e-buses and heavy vehicles.
Building Code Amendments: New residential buildings must have 100% EV-ready parking, commercial buildings 50%, and existing commercial buildings must retrofit 20% of parking spaces for EV charging.
Unified Energy Interface (UEI): Adoption of UEI (based on the Beckn Protocol) ensures interoperable charging networks, allowing seamless access across platforms.
Concessional Tariffs: EV charging and battery swapping stations benefit from concessional electricity tariffs as per Maharashtra Electricity Regulatory Commission (MERC) Order No. 217 of 2024, with a single-part tariff capped at Average Cost of Supply (ACoS) until March 31, 2028, including a 30% discount during solar hours and a 30% surcharge during non-solar hours.

Support for Manufacturing and R&D:

‘D+’ Category Benefits: All EV and battery manufacturing units, including MSMEs, receive 100% reimbursement on stamp duty, transfer duty, and registration fees for the first transaction, 50% for the second, transportation subsidies (60%, reducing 10% yearly, capped at ₹5 crore), and support for patent filing and quality certification.
R&D Investment: ₹150 million allocated under the Chief Minister’s EV R&D grant to establish three centers of excellence focusing on sodium-ion batteries, power electronics, bi-directional charging, vehicle-to-grid (V2G) integration, and green hydrogen from biomass.

Battery Recycling and Circular Economy:

The Urban Development Department is tasked with creating dedicated battery recycling hubs and drop-off points by urban local bodies to ensure sustainable end-of-life management. A digital battery passport and automated testing stations will also be introduced.

Skill Development and Job Creation:

Skill development programs through the Maharashtra State Board of Technical Education (MSBTE) and Mahaswayam portal will train mechanics, technicians, and engineers, with a target of creating 20,000 jobs by 2025.
Courses will be updated or created to cover EV repair, servicing, and charging station maintenance.

Policy Implementation and Oversight:

A multi-departmental Steering Committee, supported by the Maharashtra State EV Cell, will oversee implementation, monitor progress, resolve challenges, and explore emerging technologies like hydrogen fuel cell vehicles.
A single-window online portal streamlines approvals for charging infrastructure and ensures transparency in incentive disbursement.

Performance Metrics (FY2025):

As of early April 2025, Maharashtra registered 246,221 EVs, accounting for 12.52% of India’s EV sales, with:211,880 electric two-wheelers (18% national share, 15% YoY growth).
17,133 electric cars/SUVs (16% national share, 21% YoY growth).
2,104 electric buses (24% national share, 24% YoY growth).
In April 2025, Maharashtra contributed 19,475 units (12% of India’s 167,465 EV sales), maintaining its No. 2 rank after Uttar Pradesh.

Conclusion

The Maharashtra Electric Vehicle Policy 2025–2028 is a forward-thinking initiative that builds on the state’s prior successes in EV adoption while addressing key barriers to scalability. By offering substantial subsidies, tax exemptions, and toll waivers, the policy makes EVs more affordable for consumers and businesses. Its focus on charging infrastructure, local manufacturing, and sustainable practices positions Maharashtra as a leader in India’s electric mobility revolution. With a target of 25–30% EV penetration by 2030, the policy not only drives economic growth and job creation but also contributes to a cleaner, greener future. As Maharashtra accelerates its transition to electric mobility, the success of this policy will depend on effective implementation, stakeholder collaboration, and continuous adaptation to emerging technologies and market needs.

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Maharashtra Electric Vehicle Policy FAQ

Q. What is the Maharashtra Electric Vehicle Policy 2025–2028?

The Maharashtra Electric Vehicle Policy 2025–2028 is a state-led initiative with a ₹1,993 crore budget aimed at accelerating EV adoption and reducing carbon emissions. Building on the success of the 2021 policy, it targets 30% EV penetration in new vehicle registrations by 2030, expands incentives to 13 vehicle categories, and promotes charging infrastructure, local manufacturing, and sustainable battery recycling. The policy supports economic growth by creating 20,000 jobs by 2025 and aligns with India’s national goal of 30% EV penetration by 2030.

Q. What are the main objectives of the policy?

The policy seeks to transform Maharashtra’s transportation landscape by achieving 30% EV penetration in new vehicle registrations by 2030, electrifying 40% of public transport buses and 50% of aggregator cabs in six key urban areas, and ensuring a fully electric government fleet. It aims to establish charging stations every 25 km, support local EV manufacturing with at least one gigafactory, and provide subsidies and tax exemptions to make EVs affordable. Additionally, it focuses on sustainable battery recycling, skill development, and reducing emissions to improve air quality.

Q. Which vehicle categories are covered under the policy?

Unlike the 2021 policy, which covered five vehicle types, the 2025–2028 policy includes 13 categories, such as electric two-wheelers, three-wheelers, commercial four-wheelers, buses (state, private, and municipal), goods carriers, trucks, trailers, dumpers, and agricultural vehicles like electric tractors and combine harvesters. This broader scope ensures incentives and support are available for diverse applications, from urban mobility to rural farming.

Q. What subsidies are available for EV buyers?

The policy allocates ₹1,740 crore to provide purchase subsidies for up to 1.75 lakh EVs on a first-come, first-served basis. Buyers of electric two-wheelers can receive a 10% subsidy (up to ₹10,000), while three-wheelers qualify for up to ₹30,000. Commercial four-wheelers are eligible for up to ₹2 lakh, and electric buses can receive up to ₹20 lakh. Goods carriers and agricultural vehicles, such as electric tractors, get a 15% subsidy (up to ₹1.5 lakh). These incentives, routed through OEMs, make EVs more affordable for various users.

Q. What tax and fee exemptions are provided?

To reduce the cost of EV ownership, the policy offers a 100% exemption on motor vehicle tax, registration fees, and renewal fees for all EVs registered during the policy period, in line with the 2019 Ministry of Road Transport and Highways notification. Additionally, passenger EVs and buses benefit from a 100% toll waiver on major expressways like the Mumbai-Pune Expressway and Atal Setu, and a 50% waiver on other state highways, providing significant savings for commuters and fleet operators.

Q. Are there incentives for scrapping old vehicles?

The policy includes scrappage incentives to encourage replacing internal combustion engine vehicles with EVs. These incentives are reimbursed through original equipment manufacturers upon verification of scrappage, with buyers providing consent for the process. This initiative supports the phase-out of polluting vehicles, aligning with the policy’s goal of reducing emissions and promoting cleaner transportation options.

Q. What is the Vehicle-to-Grid (V2G) pilot program?

The policy introduces a Vehicle-to-Grid (V2G) pilot program, allowing parked EVs to supply power back to the grid during off-peak hours. This innovative feature creates a potential revenue stream for fleet operators and supports grid stability, particularly as EV adoption grows. The program is a step toward integrating EVs into the energy ecosystem, enhancing the sustainability of the state’s transportation sector.

Q. Are there specific benefits for rural areas or farmers?

The policy supports rural communities by offering a 15% subsidy (up to ₹1.5 lakh) for electric tractors and agricultural vehicles, which can reduce fuel costs by 60–70% compared to diesel vehicles. Additionally, interest-free loans through the Annasaheb Patil Arthik Vikas Mahamandal make these vehicles more accessible to farmers, promoting sustainable agriculture and lowering operational costs in rural areas.