Automobile dealers anticipate surge in EV sales after Govt announces full tax exemption

The automobile dealers in the city are expecting a good surge in the sales in coming days. They said the move encourages more citizens to opt for EVs.

Hyderabad: The State government’s announcement of 100 per cent exemption on road tax and registration fees on all electric vehicles (EVs) is expected to fuel a surge in sales, as it makes such vehicles affordable for end-users, automobile dealers in Hyderabad said.

The new EV policy starting from November 18, aims to encourage citizens to adopt eco-friendly transport. The new policy will not have an upper limit on the number of vehicles registered and will be valid for an initial period of two years i.e., until December 31, 2026.

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Rajashekhar from KUN United BYO Hyderabad said, depending on the model of the four-wheelers, there will be variation (in terms of drop in costs) of prices between Rs 4 lakh and Rs 5 lakh for the premium range and difference of up to Rs 7 lakh for high end vehicles.

“Currently, we sell between 12- 15 EV cars a month and we expect that it would increase in coming days,” Rajashekhar said.

MG Motors Hyderabad representative Dinesh says that MG cars, depending on the models and make, the price range may vary between Rs 3 and Rs 6 lakh due to the new EV policy.

Prashanth Kumar, proprietor of Pranavi Motors, an authorized automobile dealer, pointed out that there was need to spread awareness and encourage citizens to buy EVs. “By waiving- off the road tax and registration fees for the EVs, an overall expense cost of 5 per cent would be reduced. This will benefit the customer and attract him to buy the vehicles,” he said. “By the latest decision, we are expecting an increase of between 15 per cent and 20 per cent on the overall sales of EVs,” he added.

Electric buses, those being operated by the Telangana State Road Transport Corporation (TGSRTC) and registered in the State up to December 31, 2026, will also enjoy lifetime exemptions from road tax and registration fees. Additionally, buses owned by industries for transporting their employees, provided they are not used for commercial purposes, are also eligible for the same benefits.