Maharashtra EV policy 2021 comes into effect
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Maharashtra EV policy 2021 comes into effect

What is the news?

The state administration has brought into effect the much-debated Maharashtra electric vehicle (EV) policy 2021 to expedite EV sales and encourage manufacturing. The revised Maharashtra EV strategy seeks to leverage recent legislative and technological advances to enhance the state's EV goal while emphasising public and shared transportation, cargo carriers, and two-wheelers to boost EV adoption. However, this regulation will only apply to BEVs and mild-hybrid. Plug-in hybrid electric cars have not been protected by the new policy.

What is the main objective of the Maharashtra EV Policy 2021?

The Maharashtra EV Policy 2021's main objective is to hasten the adoption of BEVs in the state such that they account for 10% of new vehicle registrations by 2025. Furthermore, the policy calls for the electrification of 25% of public transportation and last-mile delivery vehicles by 2025, the conversion of 15% of the Maharashtra State Road Transport Corporation (MSRTC) existing bus fleet to electric, the establishment of at least one Gigafactory for the manufacturing of advanced chemistry cell (ACC) batteries in the state, and the promotion of regenerative energy.

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What incentives are given to the EV customers?

The state government of Maharashtra will give fiscal incentives to EV customers in the state. The incentives differ depending on the vehicle type: two-wheelers, three-wheelers, four-wheelers, and buses. These incentives will be available for car models authorised under the FAME II system and state incentives in addition to FAME II incentives. EV buyers who purchase their vehicles before December 31, 2021, would receive a Rs 5,000/kWh 'early bird discount' on the vehicle's battery capacity. This discount will be offered in addition to the demand incentives. The highest early bird discount available per vehicle would be Rs 1 lakh.

For vehicles sold without a battery, half of the incentive will go to the vehicle OEM. The other half will go to the battery swapping energy operator to help cover the cost of any deposits. It may require from the end-user for the use of the type approved swappable battery, type approved in conjunction with the corresponding OEM vehicle. Car manufacturers should pass on all incentive benefits to EV buyers.

What are the other incentives provided according to the Ministry of Road Transport and Highways?

The Maharashtra EV policy 2021 exempts all EVs sold in the state from paying road tax for the policy terms. According to a notification issued by the Ministry of Road Transport and Highways, all EVs sold in the state are free from paying fees to acquire or renew a registration certificate. Furthermore, cars qualifying for demand incentives under this programme would be eligible for scrappage incentives ranging from Rs 7,000 to Rs 25,000, depending on the vehicle. In addition, the state will encourage financial institutions and banks to give advantageous lending rates to EV client sectors such as e-autos, goods carriers, and taxis.

The Maharashtra EV policy 2021 also includes incentives for longer battery warranties and buyback agreements. The policy will provide OEMs with additional incentives to offer a minimum 5-year battery guarantee. OEMs that provide buyback programmes for vehicles up to 5 years old at a value lowered by no more than 7.5% each year of age will be eligible for extra incentives. An OEM can take advantage of both incentives at the same time. However, the total incentive amount has been restricted to Rs 12,000.

Need more information?

Do you need more information/ assistance? We at Kazam care for our pro EV shoppers and provide them with complete EV solutions. From range, financial aspect, space concerns to the battery and charging solutions. Book your appointment now! For more information, visit Kazam EV at https://www.kazam.in/ or send us a message at our social handles Kazam EV, and we will get back to your kazamly.

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