Luxury EVs in Maharashtra to Get Costlier with New 6% Tax
Luxury EVs in Maharashtra to Get Costlier with New 6% Tax
Premium electric vehicles (EVs) in Maharashtra will soon become more expensive as the state government introduces a 6% motor vehicle tax on EVs priced above ₹30 lakh.
This tax, part of the 2025-26 state budget, is expected to generate ₹320 crore in revenue. However, it may also slow down EV sales. A similar tax in Telangana led to a 50% drop in EV adoption, according to reports.
Current Tax Situation in Maharashtra
🔹 No tax is currently charged on EVs in Maharashtra.
🔹 CNG and LPG cars (privately owned) will now face a 1% higher tax, making the rate between 7% and 9%, depending on the vehicle’s type and price.
Impact on the Luxury EV Market
BMW, a leader in India’s luxury EV segment, expects 7% of its sales in 2024 to come from electric models. The BMW iX1 LWB, its most affordable EV, starts at ₹40 lakh.
Luxury EVs are gaining popularity faster than regular EVs. In 2024, 5% of luxury car sales were electric, while EVs made up less than 2% of total car sales in the mass market.
