Andhra Pradesh steps up EV push with 5% subsidy, road tax waiver
Transport Minister Mandipalli Ramprasad Reddy on Wednesday said the Andhra Pradesh government is making determined efforts to increase the use of electric vehicles (EVs) across the state. He highlighted the state's 2024–29 Sustainable Electric Mobility Policy, which is designed to support both EV buyers and manufacturers.
Under the policy, buyers of electric two-wheelers, autos, buses, transport vehicles and tractors will receive a subsidy of up to 5% of the ex-showroom price. This incentive will remain available until March 2027. The ex-showroom price is the cost of a vehicle before registration, insurance and other charges, so the subsidy helps lower the initial purchase price.
In addition, all electric vehicles registered in Andhra Pradesh will be exempted from road tax for five years. This measure is intended to make EV ownership more affordable in the long run.
To widen the charging network, the government will offer incentives of up to 25% of the installation cost, subject to a maximum of ₹3 lakh, for establishing the first 5,000 charging stations. The support is designed to attract investors and ensure the availability of charging infrastructure across the state.
Mr. Reddy drew attention to the rapid growth of EV sales across India. In August, approximately 2.98 lakh electric vehicles were sold, registering a 52.9% increase over the same month last year. The share of EVs in the overall vehicle market has also risen from 9.5% to 12.3%, reflecting a wider shift towards clean mobility.
Andhra Pradesh is among several states that have introduced dedicated EV policies to accelerate this transition. These efforts complement the central government's programmes aimed at reducing pollution and promoting sustainable transport in the country.
The TDP-led coalition government in Andhra Pradesh has set the goal of promoting 2 lakh electric two-wheelers, at least 10,000 electric three-wheelers, and 20,000 new electric cars by 2029. Additionally, it plans to expand the use of electric vehicles in public transportation.
Other measures include installing at least one electric vehicle charging station for every 30 kilometres, developing e-mobility cities, and encouraging startups in the EV ecosystem. These initiatives are aimed at building a robust and environmentally friendly transportation system in the state.
"The government is committed to transforming Andhra Pradesh into a leading state in the electric mobility sector in the country," Mr. Reddy said.
