Hyderabad: With a marked spike in registration of electric vehicles (EVs) following a tax waiver, the Telangana government is looking at extending the incentive beyond the deadline.
Before the tax exemption was introduced, the state recorded 47,730 EV registrations, according to the Times of India. The exemption on life tax and quarterly tax was introduced in November 2024, and registrations rose, with 91,572 EVs registered in the 2025-26 financial year alone.
The transport department is working on a proposal to extend the tax concession and is likely to submit it to the state government in a couple of days, says the report. As of now, the scheme covers EVs purchased up to this December.
A senior transport department official said, “The increase in EV registrations after the tax exemption shows that the incentive has
made a significant difference to buyers. We want to continue the momentum and encourage more people to shift to electric vehicles.”
This year, the state logged 1.58 lakh new EV registrations by June, according to the transport department data. Officials believe extending the tax benefit would attract more buyers to vehicles in different EV categories.
While the waiver has cost the government an estimated Rs 1,483 crore in revenue between Nov 2025 and June 2026, the department is looking at the longer-term benefits of promoting electric mobility, such as lower running costs for consumers.
How much does a buyer save?
A buyer can save up to around Rs 1 lakh in exemptions, depending on their choice of vehicle. As the department looks to increase the number of EV users, it is also working on plans to set up charging stations at district and mandal headquarters. For increasing the charging network, the department is also planning to involve EV manufacturers.
Private players and manufacturers would be encouraged to invest wherever the government cannot establish stations.
