Tax benefits drive EV adoption surge in Hyderabad

The Commissioner noted that while manufacturers are benefiting from tax incentives, investments in charging networks need to be scaled up.
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HYDERABAD: Telangana is witnessing a sharp rise in electric vehicle (EV) adoption following the implementation of its EV policy offering road tax exemption, with a significant increase in daily registrations and overall market value.

According to Transport Department data, daily vehicle sales have risen from 209 to 252 after the policy push, marking a 21% increase.

Transport Commissioner K Ilambarithi said that prior to the policy’s rollout in November 2024, around 47,730 EVs were registered in the state. Since then, adoption has accelerated, with 91,572 EVs registered in the financial year 2025–26 alone. Over the past two years, a total of 1,68,646 EVs have been registered, with the cumulative invoice value of EV-related sales crossing `6,296 crore.

Despite this growth, the development of charging infrastructure remains a major concern. The Commissioner noted that while manufacturers are benefiting from tax incentives, investments in charging networks need to be scaled up. The Transport department is engaging with industry stakeholders to ensure infrastructure expansion keeps pace with rising EV usage. Proposals from companies are under technical evaluation, and a proposal has also been submitted to introduce charging points in apartment complexes.

Meanwhile, as part of efforts to strengthen vehicle fitness testing and improve road safety, the department plans to establish Automated Testing Stations (ATS) under a government-controlled model. Under this framework, ATS facilities will be set up on government land, with all revenue from testing fees accruing to the state. Private players will be limited to equipment maintenance to ensure technical efficiency without compromising regulatory control.

The Commissioner said the decision was taken after reviewing experiences in other states, where private and public-private partnership models raised concerns over high revenue sharing and possible irregularities. The government aims to ensure stricter enforcement, accountability and uniform testing standards by retaining ownership and oversight.

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