Hurry Up If You Are Planning To Purchase An EV That Costs Over Rs 30 Lakh, Here’s The Reason…

QUICK HIGHLIGHTS

• A 6 percent Motor Vehicle Tax has been proposed on EVs priced above Rs 30 lakh 

• This could be implemented for vehicles in Maharashtra starting from April 1, 2025

• Till now, there is no motor vehicle tax on electric vehicles in Maharashtra

• The popular models above Rs 30 lakh include the Mahindra XEV 9e (top-spec), BYD Seal, Hyundai Ioniq 5, Kia EV6 and Volvo EX40

If you are someone who has been following the electric vehicle market in India, you might already be aware of the fact that there has been an increase in the demand for EVs, and there have also been plenty of new vehicles that have been launched. More and more carmakers, including some of the popular global players, have introduced their recognized products in India or are planning to do so in the near future. 

EV Tax Restructured? 

In the Maharashtra Budget 2025-26, a 6 percent motor vehicle tax has been proposed for electric vehicles that are priced above Rs 30 lakh. This new proposed policy (if implemented) goes into effect by April 1, 2025. So if you are someone who has shortlisted a few EVs over the Rs 30 lakh budget but were delaying the buying process, you might want to hurry up to potentially save money.

Also read: Planning To Buy A CNG Car In Maharashtra? Better Hurry Up As Taxes Will Increase Soon

Mass-market Remains Unaffected! 

The mass-market category ranges from anywhere between Rs 7 lakh to Rs 30 lakh (ex-showroom). In the same segment, the majority of EVs come from renowned brands like Tata, Mahindra, MG and Hyundai, and a few BYDs as well. Above Rs 30 lakh is where the luxury segment starts, and more players like Volvo, Mercedes-Benz, and BMW join the space. 

Repercussions 

Up until now, there was no motor vehicle tax on electric vehicles in Maharashtra. The proposed addition of 6 percent is in addition to the GST levied by the Central Government, which stands at 5 percent for EVs. So, a 6 percent tax on electric vehicles does feel like a big jump from no tax. It will effectively lead to a significant hike. For an EV that costs around Rs 30 lakh, the price increase could be around Rs 1,80,000. For costlier electric vehicles, the increased tax could make them more expensive by over a lakh! 

In recent news, it was revealed that popular global automaker Tesla will be introducing cars from its portfolio on our shores. Maharashtra is expected to be a key market for a player like Tesla, and the increased tax could also have a minor impact on the same. Check out our detailed coverage on the Tesla news here. 

Popular Cars That Could Be Affected! 

Off lately, we have been seeing many luxury EVs on our roads. There are plenty of popular luxury EVs, from sedans like the BYD Seal, BMW i7, and BMW i4 to SUVs like the Volvo EX40, BYD Sealion 7, Hyundai Ioniq 5, Mercedes-Benz EQE to the EQS, and the BMW iX1 LWB. It is important to note that the top-spec variant of the Mahindra XEV 9e will also feel the pinch if the new tax is implemented. 

A piece of news like this is supposed to have mixed reactions! While it is a good source of revenue for the government, it will also have an impact on the consumers and the manufacturers. While it is just a proposal, the new policy could soon get finalized. So, if you are looking to purchase a luxury EV, now is the right time!