Policy overview
Madhya Pradesh notified its revamped Electric Vehicle Policy 2025, replacing the state's first EV policy from 2019. It runs five years from notification, or until superseded. Unusually among state EV policies, the nodal department is Urban Development & Housing rather than Transport — which shapes the policy's heavy emphasis on model cities, parking mandates, green zones and building bye-laws over per-vehicle cash incentives.
Key parameters
| Policy period | 5 years from notification |
| Nodal department | Urban Development & Housing |
| Charging infra nodal agency | MP Power Management Company Ltd |
| Oversight body | MP Electric Vehicle Promotion Board |
| Scope | BEVs and FCEVs only — no hybrids |
| EV model cities | Bhopal, Indore, Gwalior, Jabalpur, Ujjain |
| Single-window portal | EV Tarang |
What's covered
- Motor vehicle tax and registration fee exemptions, time-limited by vehicle segment
- Retrofitting incentives for converting existing ICE vehicles to electric
- Capital subsidies for charging and battery-swapping station operators
- EV parking reservation mandates across housing, commercial, education and government sites
- Green zones / e-mobility zones in tourist, religious, tech-hub and SEZ areas
- Battery reuse, refurbishing and recycling ecosystem provisions
- EV curriculum in 53 polytechnics and 271 ITIs, plus free EV-repair training for service professionals
Electric two-wheelers (E2W)
The largest-target segment in the policy, with a distinctive 100% electrification goal for commercial two-wheeler fleets — relevant to delivery and gig-economy operators.
| Benefit | Detail |
|---|---|
| Cash purchase subsidy | None |
| Motor vehicle tax + registration fee | 100% exempt, till 1st year of implementation |
| Retrofitting incentive | ₹5,000 / vehicle, till 1st year |
| Target, new registrations | 40% by end of policy period |
| Target, commercial fleet | 100% by end of policy period |
- Vehicle must meet PM E-DRIVE criteria, or hold ARAI/ICAT or other MoRTH-approved agency certification
- Must use an "advanced battery" as defined under the central PM E-DRIVE scheme — lead-acid vehicles don't qualify
- All state incentives are granted in addition to any central incentives applicable at time of purchase
Electric three-wheelers (E3W)
MP sets the most aggressive three-wheeler target of any state page in this tracker — 80% of new registrations across both passenger and freight, raised from 70% in the draft.
| Benefit | Detail |
|---|---|
| Cash purchase subsidy | None |
| Motor vehicle tax + registration fee | 100% exempt, till 1st year of implementation |
| Retrofitting incentive | ₹10,000 / vehicle, till 1st year |
| Eligible categories | L5-M and L5-N only |
| Target, new registrations | 80% (passenger + freight) |
- Purchaser must hold a driving licence — an eligibility condition not present in most state policies
- Vehicle must be ARAI/ICAT or other MoRTH-approved-agency certified
- Electric autos/rickshaws are permitted only in certain areas or outside major cities, to manage congestion — a real operating constraint worth checking before fleet deployment
- Transport department grants permit exemptions to electric commercial public transport vehicles
Electric four-wheelers (E4W / cars)
Cars get a price-capped tax exemption plus something no other state page in this tracker has: enforceable EV parking reservation mandates.
| Cash purchase subsidy | None |
| Motor vehicle tax + registration fee | 100% exempt, till 1st year |
| Price cap | Ex-factory up to ₹20 lakh |
| Retrofitting incentive | ₹25,000 / vehicle, till 1st year |
| Eligible categories | Includes L7 quadricycles, M category |
| Target, new registrations | 15% by end of policy period |
EV parking mandates
- New RWA housing societies: 20% of open visitor parking reserved exclusively for EVs — ICE vehicles barred even when EV spots are empty
- Public roadside parking: 25% reserved for EVs by end of policy period
- Educational institutions and commercial complexes: 25% reserved, existing and new
- Government offices: 25% reserved, existing and new
- Detailed guidelines to include mandatory sub-reservation for women and differently-abled people
- Green number plates: white lettering for personal use, yellow for commercial
Electric light commercial vehicles (eLCV)
N1-category goods carriers up to 3,500 kg GVW, positioned in the policy as central to urban logistics and rural market connectivity.
| Benefit | Detail |
|---|---|
| Cash purchase subsidy | None |
| Motor vehicle tax + registration fee | 100% exempt, till 1st year of implementation |
| Retrofitting incentive | Not applicable |
| Definition | Goods carriers up to 3,500 kg GVW (N1) |
- eLCVs are explicitly served by Medium and Large charging station tiers under the policy's station classification
- The policy names last-mile delivery and rural-market supply chain connection as the segment's strategic role, but attaches no purchase incentive to it
Electric buses (eBus)
Buses get a longer exemption window than passenger segments — two years instead of one — plus permit waivers and operational priority at depots.
| Cash purchase subsidy | None |
| Motor vehicle tax + registration fee | 100% exempt, till 2nd year |
| Permit fee | 100% waived, all vehicles sold in policy period |
| Applies to | Govt buses (mini/midi/standard/AC) and non-govt (school, private operators) |
| Target | 40% of new registrations |
Operational advantages
- E-buses under Public Transport SPVs get priority departure and arrival timings at bus stands and depots
- Allocated specific bays / priority spots at stands and depots
- Applies to both intra-city and inter-city operations, with inter-city routes targeted between Indore, Bhopal, Jabalpur, Gwalior and Ujjain
- Panchayat & Rural Development Department to support charging planning along inter-city routes serving rural areas
- Model cities must implement detailed intra-city public bus fleet electrification plans
- Regular permit procedure still applies despite the fee waiver
Trucks, tractors & e-ambulances
MP explicitly covers segments most state policies leave out, though trucks and tractors start as pilots rather than full incentive schemes.
| Segment | Incentive | Note |
|---|---|---|
| E-truck | 100% MV tax + reg. fee exempt, till 2nd year | Pilot-led; full provisions due in policy year 3 |
| E-tractor | 100% MV tax + reg. fee exempt, till 2nd year | Pilot-led; full provisions due in policy year 3 |
| E-ambulance | 100% MV tax + reg. fee exempt, till 2nd year | Aligned with PM E-DRIVE's dedicated e-ambulance funds |
- The policy commits to running pilots for electric trucks and tractors, with comprehensive provisions to be developed in the third year of the policy period based on pilot findings
- Tractor inclusion is notable — the policy cites tractors as 8% of India's annual oil consumption and 60% of agricultural fuel use
- Corporates are permitted to own and operate EVs for employee feeder transport
Charging & battery-swapping infrastructure
This is where MP's actual money goes. Charging gets genuine capital subsidies with a clear three-tier station classification tied to electricity connection type — the most operator-relevant part of the policy.
Capital subsidies (over and above PM E-DRIVE)
| Station type | Subsidy | Cap | Quota |
|---|---|---|---|
| Small (2W, 3W; LT, ≤112 kW) | 30% of equipment value | ₹1,50,000 | First 500 stations |
| Medium (2W, 3W, cars, eLCV; LT) | 30% of equipment value | ₹3,00,000 | First 300 stations |
| Large (incl. heavy-duty; HT, >112 kW) | 30% of equipment value | ₹10,00,000 | First 200 stations |
| Battery swapping station | 30% of eligible fixed capital investment | ₹5,00,000 | First 300 stations |
Deployment mandates & targets
- Setting up public charging stations is a de-licensed activity — open to any individual or entity meeting standards
- At least one charging station every 20 km along highways and major roads (encouraged)
- Fast-charging station for long-range/heavy-duty EVs every 100 km on highways, one on each side
- At least one charging station in every 1 km × 1 km grid across the state (encouraged)
- Government buildings/offices: at least 10% of parking spots with EV chargers — mandatory
- New commercial complexes, housing societies and townships ≥2,000 sq m built-up area: charging stations mandatory, with 10% of parking spots equipped
- All petrol pumps encouraged to have at least one EV charging point by end of policy period
- ISBTs, bus terminals, bus stops and municipal public parking to have charging stations
- RWAs must process charging-installation NOCs within 7 working days
- Building bye-laws to be revised to MoHUA Model Building Bye-Laws 2016 standard, making new buildings "EV ready" with 1.25 safety-factor load provision
- State to compile a charging infrastructure land bank from municipal, revenue, PWD and ISBT land
- Government-owned stations to prioritise O&M by trained Self-Help Groups, Area/Cluster Level Federations and City Livelihood Centres
- V2G pilots to run in each of the five EV model cities, with data published on the EV portal
Targets & policy timeline
All adoption targets are measured against new registrations by the end of the policy period.
| Segment | Target (end of policy period) |
|---|---|
| Electric two-wheelers | 40% of new registrations |
| Electric two-wheelers, commercial fleet | 100% of new registrations |
| Electric three-wheelers | 80% (passenger + freight) |
| Electric four-wheelers | 15% of new registrations |
| Electric buses | 40% of new registrations |
| State government vehicle procurement | 80% electric (2W/3W/4W) |
First MP EV Policy
Urban Development & Housing designated nodal department; policy drives 88.6% CAGR in state EV registrations FY19–FY24, reaching over 1.48 lakh cumulative EVs.
EV Policy 2025 published
Final policy document released via Invest MP. Draft-stage purchase subsidies (₹50,000 for 4W) do not appear in the notified text.
E2W, E3W, car and eLCV exemptions window
Motor vehicle tax and registration fee exemptions plus all retrofitting incentives are limited to this window.
Bus, truck, tractor and ambulance exemptions window
Heavy-duty and public-service segments get an extra year of tax and registration relief.
Truck & tractor provisions developed
Comprehensive provisions for these segments to be framed based on pilot project findings.
Policy period ends
Five years from notification, or earlier if replaced by a revised policy. All adoption targets measured at this point.
Frequently asked questions
No. The notified MP EV Policy 2025 contains no per-vehicle cash purchase subsidy for any segment. Its buyer-side incentives are motor vehicle tax and registration fee exemptions, time-limited by segment, plus retrofitting incentives for converting existing ICE vehicles. The ₹50,000 four-wheeler subsidy figure widely reported in early 2025 was in the draft policy and does not appear in the final notified text.
100% motor vehicle tax and registration fee exemption, but only till the first year of policy implementation. Vehicles must meet PM E-DRIVE criteria or be approved by ARAI, ICAT or another MoRTH-approved agency, and must use an advanced battery as defined under PM E-DRIVE.
Yes. The 100% motor vehicle tax and registration fee exemption applies to electric cars with an ex-factory cost up to ₹20 lakh, and only till the first year of policy implementation. Electric cars for this purpose include L7 quadricycles and M category vehicles.
₹5,000 per vehicle for two-wheelers, ₹10,000 for three-wheelers and ₹25,000 for four-wheelers converted from ICE to electric, each till the first year of policy implementation. The retrofit must use certified technology approved by ARAI, ICAT or another MoRTH-approved agency.
A 30% capital subsidy on charging equipment applies across three station tiers: up to ₹1.5 lakh for the first 500 small stations, up to ₹3 lakh for the first 300 medium stations, and up to ₹10 lakh for the first 200 large stations. Battery swapping stations get 30% up to ₹5 lakh for the first 300 stations. These are over and above PM E-DRIVE incentives.
By the end of the policy period: 40% of new two-wheeler registrations electric (100% for commercial two-wheeler fleets), 80% of new three-wheeler registrations across passenger and freight, 15% of new four-wheeler registrations, and 40% of new bus registrations. Separately, 80% of state government vehicle procurement across 2W, 3W and 4W categories must be electric.
Sources & further reading
- Government of Madhya Pradesh — Madhya Pradesh Electric Vehicle Policy 2025 (final) — primary source for every figure on this page
- YoCharge — MP EV Policy 2025 overview — includes link to the official policy PDF
- MeraEV — MP EV subsidy status, verified Aug 2026 — independently flags the draft-vs-notified subsidy discrepancy
- Draft-stage policy coverage (for contrast only, not current figures): Construction World, Feb 2025
- MP EV Tarang portal — official one-stop portal for incentives, charging station applications and EV comparison tools
Compiled by the All India EV Research Desk from the notified policy document. This page summarises publicly available policy details for informational purposes and is updated as official notifications evolve — it is not a substitute for the official gazette text or the policy's separately-issued operating guidelines. Because most exemptions are tied to specific implementation years, confirm current status before relying on any figure.