Telangana’s Zero Tax EV Policy Drives 2 Lakh+ Sales as Hyderabad Leads in Rapid Electric Vehicle Adoption
Telangana has emerged as a frontrunner in India’s electric mobility revolution, registering a sharp surge in electric vehicle (EV) sales following the implementation of a state-wide 100% exemption on road tax and registration fees. In just seven months since the EV policy rollout in November 2024, the state has recorded the sale of over 50,000 electric vehicles, bringing the total registered EVs in the state to over 2 lakh.
This marks a dramatic jump from 1.25 lakh EVs registered in FY 2023–24, highlighting the impact of targeted fiscal incentives and proactive state policy.
Two-Wheelers Lead the Transition
The data reveals that electric two-wheelers dominate the market, accounting for more than 37,000 units sold since the policy’s launch. Electric four-wheelers, including 1,153 electric taxis, make up around 10,000 of the newly registered EVs. The trend reflects both growing consumer awareness and increasing availability of EV models across segments.
The state’s zero-tax policy, which eliminates both road tax and registration charges for all categories of electric vehicles, has made EV ownership significantly more affordable and attractive to buyers.
Policy in Effect Till 2026 — With No Vehicle Limit
Introduced in November 2024, the Telangana EV policy is designed to remain in force until December 31, 2026. The benefits apply across a wide range of vehicle types:
- Electric two-wheelers and four-wheelers
- Commercial taxis
- Three-seater e-rickshaws
- Electric light goods carriers
- Electric tractors and buses
Notably, the scheme does not impose a cap on the number of vehicles that can benefit from the exemptions — a move that ensures unrestricted access for individuals and businesses alike.
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Commercial Segment Gains Momentum
Telangana is also witnessing strong growth in the commercial EV segment, particularly in electric three-wheelers (e3Ws). The issuance of 20,000 new permits for e3Ws has added a major boost to shared and last-mile transport solutions in both urban and semi-urban regions.
“The exponential rise in EV adoption across Hyderabad and beyond clearly reflects the success of Telangana’s forward-looking policy,” said Venugopal Rao Nellutla, an electric mobility industry expert.
“However, to scale this momentum further — especially in rural and underserved communities — the state must introduce targeted subsidy schemes through SC, ST, and minority welfare corporations. These initiatives would improve the financial viability of EVs and increase their social acceptance,” he added.
A Model for Other States
Telangana’s comprehensive EV policy could serve as a model for other Indian states seeking to accelerate electric mobility adoption. By combining financial incentives, ease of registration, and a focus on inclusive access, the state has demonstrated how government support can drive large-scale behavioral shifts toward sustainable transport.
As India aims to electrify its mobility sector and reduce transport emissions, Telangana’s success story is a timely reminder of what’s possible with clear policy direction and consistent execution.
