Digital Scoop India Official Platform of Digital Scoop India Featuring Latest & Best News #Articles #Bytes #Entertainment #DigitalScoopMagazine
Related Articles
Luxury electric vehicles (EVs) in Maharashtra will soon become more expensive after the state government announced a 6% motor vehicle tax on premium EVs priced above ₹30 lakh. This move, part of the state budget proposals for the financial year 2025-26, has raised concerns over potential sales declines in the segment.
Until now, Maharashtra did not levy any motor vehicle tax on EVs, a policy aimed at promoting their adoption. However, with the new tax, premium EVs will see a significant price hike.
Higher Costs, Potential Impact on Sales
The government expects to generate an additional ₹320 crore in revenue in the next fiscal year through this tax, according to an Economic Times report. However, industry experts warn that the move could slow down the adoption of luxury EVs.
“When Telangana introduced a similar tax, EV penetration halved,” the report noted.
BMW, the current leader in India’s luxury EV market, may be among the brands affected. The company reported that 7% of its total sales in 2024 were electric, with its most affordable EV model, the iX1 LWB, priced at ₹40 lakh.
“The introduction of a 6% tax on electric vehicles priced above ₹30 lakh in Maharashtra adds a significant cost burden on premium EVs, potentially slowing down the adoption of clean mobility solutions,” BMW Group India president Vikram Pawah was quoted as saying.
Growth of the Luxury EV Segment
Despite the challenges, electrification in India’s luxury car market has been growing faster than in the mass segment. In 2024, EVs accounted for 5% of total luxury car sales, compared to less than 2% in the mainstream car market.
Along with the EV tax, Maharashtra has also raised the motor vehicle tax by 1 percentage point on individual-owned CNG and LPG four-wheelers, which currently attract a tax of 7-9% depending on the vehicle type and price.
Sources BY Agencies
