(Passenger cars: 1.5 lac; fleet cars: 2 lac; good carriers: 1 lac; buses Rs 20 lac; two-wheelers: Rs 10,000; e3w and e-rickshaws Rs 30,000.)
MUMBAI: April 24, 2025: With a total budget of Rs 11,373 crore, the Maharashtra government unveiled an updated 2025 EV Policy on May 23, 2025, offering more incentives for residents to purchase electric vehicles over and above the Government of India’s PM E Drive policy.
A wide range of incentives are available under the Maharashtra EV Policy 2025, aimed at both EV consumers and the broader EV ecosystem.
In an attempt to decarbonise the economy, the state has extended its assistance beyond demand-side subsidies to include funds for recycling, EV charging, and infrastructure development. The primary goals of the policy are to encourage the use of electric vehicles, build a robust infrastructure for charging them, and simultaneously incentivise demand while advancing a circular economy.
The state has set aside Rs 150,000 as an upfront subsidy for the first 10,000 customers who buy passenger electric vehicles as part of demand-side incentives. For fleet passenger electric vehicles, the incentive increases to Rs 2,00,000 for the first 10,000 customers. A total of Rs 1,00,000 in subsidies will be given to the first 10,000 purchasers of electric light commercial vehicles (E-LCVs) weighing less than 3.5 tonnes.
Additionally, the state is providing incentives worth Rs 20 lakhs for 1,500 buses run by state transport undertakings (STUs) in the M3 and M4 categories. 1,500 electric buses that are bought by private operators will also be eligible for subsidies for the first time.
M3 buses are classified as having nine or more passenger seats (not including the driver) and a maximum gross vehicle weight of more than five tonnes by the Government of India. M4 buses are smaller and usually utilised for shared taxi services or public transportation. The state intends to provide incentives for 3,000 electric buses in total, with 1,500 buses allocated to each category.
In the electric two-wheeler market, the government is giving the first 100,000 users in the L1 category a discount of Rs 10,000 off the ex-factory price of electric motorcycles and scooters. This category includes lower-powered, smaller motorcycles with maximum speeds not exceeding 50 km/h. Higher-speed motorcycles in the L2 category are also eligible for state assistance.
For the first time, the state intends to provide incentives of Rs 30,000 for e-rickshaws in the context of electric three-wheelers and similar incentive amount for the “L5N” category basically refers to electric auto rickshaws that are used for cargo transportation for the first 10,000 e cargo autos
As for EV charging, the state requires, subject to technical feasibility, that all new and existing fuel pumps on state and federal highways have at least one fast charging station. A Memorandum of Understanding (MoU) will be signed by the Government of Maharashtra’s Department of Transport and Oil Marketing Companies (OMCs) to support this initiative.
A structured framework for Viability Gap Funding (VGF) will be established by the state to support the installation of DC fast charging stations and ensure the successful deployment of high-power EV charging infrastructure along highways. Each charging station can receive a maximum of Rs 5 lakhs in support through VGF, provided it includes four DC chargers with capacities ranging from 50 KW to 250 KW.
Support of Rs 10 lakhs will be given for new charging stations for electric trucks and buses, provided that there are at least two DC charging points with a capacity of 250 KW to 500 KW each.
A State Nodal Agency will also be established by the state’s Energy Department to create and carry out a “Integrated EV Charging Infrastructure Plan.” Among other things, this plan will include a system for classifying EV charging stations according to the availability of battery storage and the use of renewable energy.
Additionally, a proposal to carry out a vehicle-to-grid integration pilot exercise has been put forth; this will be done in consultation with the Maharashtra Electricity Regulatory Commission (MERC). The Department will create the required regulatory frameworks and/or guidelines in response to the pilot’s findings.
Establishing EV charging and swapping stations has required multiple permits from various agencies, which has made it difficult to build enough charging infrastructure in the state. The state has proposed a One-Window Online System/Portal to address this issue. This system will streamline the approval process for necessary charging infrastructure permissions by combining approvals from multiple government agencies and local authorities.
