Incentives drive up electric vehicle sales in Telangana

The surge in EV adoption has also spotlighted infrastructure gaps, particularly the insufficient number of charging stations.
The Telangana government introduced a 100% exemption on road tax and registration fees for electric vehicles.
The Telangana government introduced a 100% exemption on road tax and registration fees for electric vehicles. Photo | Sri Loganathan Velmurugan
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2 min read

HYDERABAD: Telangana appears to be undergoing a rapid green transformation, with electric vehicles (EVs) — ranging from two-wheelers and auto-rickshaws to cars and buses — becoming an increasingly common sight. As of March 2025, the state recorded 2.59 lakh EV registrations, accounting for 4.2% of the total eco-friendly automobiles registered across India.

EV registrations saw a steep rise from 1,06,835 in 2023 to 2,59,053 as of March 2025, according to sources from RTA and a report by JMK Research and Analytics. In the current financial year alone, 72,740 EVs have already been registered, surpassing the 65,478 recorded in FY 2023 — highlighting the state’s growing shift towards sustainable mobility, especially in the capital city of Hyderabad.

The EV landscape is dominated by two-wheelers, which make up 83.36% of total registrations, followed by four-wheelers (11.29%), three-wheeler carriages (3.08%), and passenger three-wheelers (1.99%).

However, the surge in EV adoption has also spotlighted infrastructure gaps, particularly the insufficient number of charging stations. With only 976 public EV charging stations currently, Telangana is struggling to keep up with the demand created by the surge in electric vehicles.

100% road tax exemption for EVs

A key driver behind this surge is the state’s forward-thinking EV policy. The Telangana government introduced a 100% exemption on road tax and registration fees for electric vehicles. This incentive, valid until December 31, 2026, applies to a wide range of EVs, including two- and four-wheelers, commercial passenger vehicles, three-seater auto-rickshaws, light goods carriers, tractors, and buses.

Public transport in Hyderabad is also joining the clean energy movement. The Telangana State Road Transport Corporation (TGSRTC) currently operates 236 electric buses within Hyderabad and plans to add 277 more by August this year. The initiative is part of the broader “Pollution-Free Hyderabad” campaign supported by both the state and Central governments.

In a major push, the Central government recently sanctioned 2,000 electric buses for Hyderabad under the Prime Minister’s e-Drive scheme. The state aims to operate a total of 2,800 electric buses within the Outer Ring Road (ORR) by gradually phasing out older diesel buses, which will then be relocated to rural districts.

In addition, the state government has cleared permits for 65,000 new eco-friendly auto-rickshaws within the city and ORR limits. Of these, 20,000 will be electric, and another 20,000 will be powered by either CNG or LPG. To support cleaner operations, 25,000 existing petrol or diesel autos will be allowed to convert to electric.

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