Policy overview
The Andhra Pradesh Sustainable Electric Mobility Policy 4.0 was issued by the Industries and Commerce Department on 11 December 2024, running five years to December 2029 or until superseded. It builds on the earlier 2018–2023 policy and is framed around India's target of carbon neutrality in the transport sector by 2047. Two design choices make it unlike any other state policy in this tracker: the incentive is a percentage discount rather than a per-kWh amount, and electric cars are deliberately excluded from it.
Key parameters
| Issued | 11 Dec 2024 |
| Effective until | 10 Dec 2029, or until superseded |
| Nodal department | Industries & Commerce |
| Purchase incentive | 5% of ex-showroom, 10% with scrappage CoD |
| Incentive window | Till March 2027 |
| Road tax | 100% exempt, 5 years |
| Electric cars | Excluded from purchase incentive |
| Hybrids | No incentive, no road tax exemption |
What's covered
- Percentage-based purchase incentive for e-2W, e-3W, e-goods carriers, e-tractors and e-buses
- Doubled incentive for buyers scrapping an old vehicle through a recognised RVSF
- 100% road tax exemption for EVs registered in the state
- Capital subsidy for the first 5,000 public charging stations
- Five e-mobility cities backed by a ₹500 crore corpus fund
- ₹250 crore research grant for battery management, drivetrains and fuel cells
- Investment subsidies for manufacturers, weighted to MSMEs and linked to domestic value addition
- Subsidies for Registered Vehicle Scrapping Facilities and Automated Testing Stations
- 100% electrification of the APSRTC fleet
- Support for retrofitting ICE vehicles for public transport use
The two design choices that define this policy
First, Andhra Pradesh pays a percentage of ex-showroom price rather than a per-kWh amount or a flat figure. That means the subsidy scales with vehicle price up to the ceiling, rather than with battery size — a different incentive signal from Delhi, Odisha or Punjab, where bigger batteries earn more. Second, the policy explicitly excludes electric cars from purchase incentives while still exempting them from road tax. Taken together, the state is directing cash at the segments that do the most kilometres — two- and three-wheelers, goods carriers, tractors and buses — and leaving private car buyers with tax relief only.
How the purchase incentive works
The mechanism is simple, but the price ceilings are strict and are where most eligibility questions land. The discount applies to ex-showroom price; the ceiling applies to the same figure.
| Condition | Discount on ex-showroom price |
|---|---|
| Standard purchase | 5% |
| With Certificate of Deposit from a recognised RVSF operator | 10% |
| Category | Ex-showroom price must not exceed | Max incentive at 10% |
|---|---|---|
| Electric two-wheeler | ₹1,00,000 | ₹10,000 |
| Electric three-wheeler | ₹2,00,000 | ₹20,000 |
| Electric goods carrier | ₹5,00,000 | ₹50,000 |
| Electric tractor | ₹8,00,000 | ₹80,000 |
| Electric bus | ₹2,00,00,000 | ₹20,00,000 |
| Electric car | Not eligible | — |
- The Certificate of Deposit must come from a recognised Registered Vehicle Scrapping Facility, and the policy requires it to be for the same category of vehicle being replaced
- The two-wheeler ceiling of ₹1 lakh ex-showroom is tight against current market pricing — a significant share of popular electric scooters sit above it, so eligibility should be checked model by model rather than assumed
- The incentive applies to purchases for both personal and commercial use
- Hybrid vehicles receive no purchase incentive under this policy
- The incentive window runs to March 2027, which is before the policy period itself ends in December 2029
Electric two-wheelers (E2W)
The largest volume target in the policy at 2 lakh registrations by 2029 — but with the tightest price ceiling relative to market pricing.
| Parameter | Value |
|---|---|
| Purchase incentive | 5% of ex-showroom, 10% with scrappage CoD |
| Price ceiling | ₹1,00,000 ex-showroom |
| Maximum benefit | ₹10,000 |
| Road tax | 100% exempt |
| 2029 target | 2,00,000 registrations |
| Central PM E-DRIVE | Applicable, dealer-applied |
- The ₹1 lakh ceiling steers the incentive toward entry-level and commuter scooters rather than premium models
- Because the incentive is a percentage, a cheaper eligible scooter earns less in absolute rupees than one priced near the ceiling — the opposite of a flat-amount scheme
- State incentive stacks with the central PM E-DRIVE demand incentive applied by the dealer at invoice
Electric three-wheelers (E3W)
A modest 10,000-vehicle target by 2029, with a ₹2 lakh ceiling that covers most of the current e-auto and e-rickshaw market.
| Parameter | Value |
|---|---|
| Purchase incentive | 5% of ex-showroom, 10% with scrappage CoD |
| Price ceiling | ₹2,00,000 ex-showroom |
| Maximum benefit | ₹20,000 |
| Road tax | 100% exempt |
| 2029 target | 10,000 registrations |
| Central PM E-DRIVE | Applicable to e-3W |
- The ₹2 lakh ceiling accommodates most L5 passenger and cargo three-wheelers currently sold
- Retrofitting ICE vehicles for public transport use is separately supported under the policy
- The 10,000-unit target is modest against comparable states, reflecting AP's smaller three-wheeler base relative to northern states
Electric four-wheelers (E4W)
This is the category most likely to be misreported. Andhra Pradesh sets a 20,000-car registration target for 2029 while explicitly excluding electric cars from the purchase incentive — the state wants the cars, but is not paying for them.
| Purchase incentive | Not eligible — stated in policy |
| Road tax | 100% exempt |
| Hybrid four-wheelers | No road tax exemption |
| Central PM E-DRIVE | Not applicable to private cars |
| 2029 target | 20,000 registrations |
What this means for a car buyer
- The state-level benefit is the road tax exemption alone — there is no cash discount at purchase
- The exclusion is explicit in the policy text, not an oversight or an unfunded line
- Hybrid four-wheelers are specifically named as not receiving road tax exemption, so the distinction between BEV and hybrid matters at registration
- An ICE vehicle registered in the state may attract a concession on submission of a Certificate of Deposit — confirm the exact scope and category matching with the Transport Department
- Because central PM E-DRIVE also excludes private cars, an AP car buyer receives no cash incentive from either level of government
Electric goods carriers & tractors
Andhra Pradesh is one of the few states in this tracker to name electric tractors as a distinct incentivised category — a meaningful choice in a state where agriculture is a major fuel consumer.
| Category | Incentive | Price ceiling | Max benefit |
|---|---|---|---|
| Electric goods carrier | 5% / 10% with CoD | ₹5,00,000 | ₹50,000 |
| Electric tractor | 5% / 10% with CoD | ₹8,00,000 | ₹80,000 |
- Both categories also receive the 100% road tax exemption for vehicles registered in the state
- Electric tractors carry the second-highest per-vehicle benefit in the policy after buses, which signals genuine intent rather than a token line
- Central PM E-DRIVE incentives apply to electric trucks and can stack with the state discount
- The ₹5 lakh goods carrier ceiling covers most small last-mile cargo vehicles but excludes larger light commercial models
Electric buses (eBus)
Buses carry by far the largest per-vehicle benefit in the policy, alongside a headline commitment to fully electrify the state transport corporation fleet.
| Purchase incentive | 5% / 10% with scrappage CoD |
| Price ceiling | ₹2,00,00,000 |
| Maximum benefit | ₹20,00,000 |
| Road tax | 100% exempt |
| APSRTC fleet target | 100% electrification |
| Central PM E-DRIVE | Applicable to buses |
Fleet electrification
- APSRTC is assigned direct responsibility for public fleet electrification under the policy's stakeholder framework
- The ₹2 crore ceiling is high enough to cover essentially all electric bus models currently sold in India, making the 10% discount effectively uncapped in practice
- At ₹20 lakh maximum, the bus incentive is the largest single per-vehicle benefit in the policy by a wide margin
- Support for retrofitting ICE vehicles for public transport use provides an alternative route for existing fleet
- 100% APSRTC electrification is a full-fleet commitment rather than a percentage target — among the more ambitious STU goals in this tracker
Charging infrastructure
Andhra Pradesh starts from a thin base and has set a correspondingly steep target. As of November 2024 the state had 601 public charging stations — roughly one every 205 km of road length, against a policy target of one every 30 km on green corridors.
| Provision | Detail |
|---|---|
| Capital subsidy | 25% per public charging station |
| Cap | Up to ₹3,00,000 per station |
| Quota | First 5,000 stations over 5 years |
| Excluded from subsidy calculation | Land, electricity connection, DTR and civil costs |
| Battery swapping capital subsidy | Up to ₹5,00,000 referenced in policy |
- The exclusion of land, connection, distribution transformer and civil costs materially narrows the eligible base — the 25% applies to equipment, not the full project cost, which is the single most important detail for anyone modelling station economics here
- Charging station installation mandates apply to new residential and commercial developments
- Developers incentivised to integrate charging points into malls, airports and residential complexes
- NREDCAP is the assigned agency for setting up charging facilities
- Five e-mobility cities to be developed as model hubs with enhanced infrastructure and green zones, backed by a ₹500 crore corpus
Manufacturing, recycling & R&D
The supply-side package ties larger firms' incentives to domestic value addition rather than headline investment alone, and gives recycling infrastructure an unusually prominent role.
Manufacturing incentives
- Investment subsidies for MSMEs, reported in the range of 35% to 45% depending on the track — confirm the applicable rate for your category against the policy document
- Incentives for larger firms linked to domestic value addition rather than investment size alone
- Subsidies for patent filing and quality certification
- Electricity duty reimbursement
- 100% exemption on stamp duty and land conversion fees
- Additional interest subsidy on working capital loans for EV and component manufacturing units, over and above central scheme provisions
Recycling & innovation
- Registered Vehicle Scrapping Facilities (RVSF) and Automated Testing Stations (ATS) receive subsidies and incentives
- Private industrial parks, recyclers and scrapping facilities eligible for investment support with fee waivers and reimbursements
- ₹250 crore research grant for battery management systems, drivetrain systems and fuel cell technologies
- 100 incubation centres for e-mobility startups
- The RVSF network is structurally central: it is what makes the doubled 10% purchase incentive possible, so scrapping capacity directly gates how much of the demand-side benefit reaches buyers
Targets & policy timeline
All registration targets are measured by the end of the policy period in 2029.
| Target | By 2029 |
|---|---|
| Electric two-wheelers registered | At least 2,00,000 |
| Electric three-wheelers registered | At least 10,000 |
| Electric four-wheelers registered | At least 20,000 |
| APSRTC fleet | 100% electrified |
| Green corridor charging | One station every 30 km |
| E-mobility city charging | One station per 3×3 km grid |
| Transport sector carbon neutrality | Scope 1, by 2047 |
Earlier AP EV policy
Provided road tax and registration charge reimbursement on EV sales, with a stated ambition for Andhra Pradesh to be among India's leading EV states.
Charging baseline recorded
601 public charging stations statewide, averaging one every 205 km of road length — the starting point against which the 30 km corridor target is set.
Policy 4.0 issued
Industries and Commerce Department notifies the Sustainable Electric Mobility Policy 4.0 (2024–29), introducing the percentage-discount incentive, scrappage doubling, and the electric car exclusion.
Purchase incentive window closes
The 5% and 10% ex-showroom discounts run to this date — two and a half years before the policy period itself ends. Milestones for charging infrastructure development also fall here.
Policy period ends
All registration, fleet and charging density targets measured. Policy remains in force until this date or until a subsequent policy replaces it.
Transport carbon neutrality
Long-horizon goal of Scope 1 carbon neutrality in the state's transport sector, aligned with India's national target.
Frequently asked questions
No. The Sustainable Electric Mobility Policy 4.0 explicitly excludes electric cars from purchase incentives. The incentive applies only to electric two-wheelers, three-wheelers, goods carriers, tractors and buses. Electric car buyers still receive the 100% road tax exemption for vehicles registered in the state.
It's a percentage discount on ex-showroom price rather than a per-kWh or flat amount. Buyers get 5% off the ex-showroom price until March 2027, rising to 10% if they produce a Certificate of Deposit from a recognised Registered Vehicle Scrapping Facility operator. Eligibility is capped by vehicle price.
Ex-showroom price must not exceed ₹1 lakh for electric two-wheelers, ₹2 lakh for three-wheelers, ₹5 lakh for electric goods carriers, ₹8 lakh for electric tractors and ₹2 crore for electric buses. These ceilings are strict, and a large share of current market models sit above the two-wheeler and three-wheeler limits.
Yes. Electric vehicles registered in the state receive a 100% road tax exemption, stated in the policy as running for five years. Hybrid vehicles receive neither the purchase incentive nor the road tax exemption, and hybrid four-wheelers are specifically excluded from road tax relief.
A 25% capital subsidy of up to ₹3 lakh per public charging station, for the first 5,000 stations over five years. The subsidy excludes land, electricity connection, distribution transformer and civil costs. Charging station installation mandates apply to new residential and commercial developments.
At least 2 lakh new electric two-wheelers, 10,000 electric three-wheelers and 20,000 electric four-wheelers registered; 100% electrification of the APSRTC fleet; one charging station every 30 km on green corridors and one per 3×3 km grid in designated e-mobility cities.
Sources & further reading
- Government of Andhra Pradesh — Sustainable Electric Mobility Policy 4.0 (2024–29) — primary policy document via NREDCAP
- EVreporter — AP EV Policy 2024 summary — purchase incentive structure, price ceilings, charging subsidy and targets
- Mercom India — policy targets and charging density goals
- EMobility+ — MSME investment subsidy range and fee exemptions
- Humans of EV — e-mobility cities, incubation centres and recycling provisions
- Charging station capital subsidy and road tax exemption period, Power Line Magazine, Dec 2024
Compiled by the All India EV Research Desk. This page summarises publicly reported policy details for informational purposes and is updated as official notifications evolve — it is not a substitute for the official gazette text. Reported manufacturing subsidy rates vary by track between sources; confirm the applicable rate and current scheme status against the policy document before commercial or editorial reuse.