Telangana EV Registrations Rise 20% Following Removal of Tax Exemption Cap

HYDERABAD — Electric vehicle registrations across Telangana have increased by approximately 20% following the state government's decision to remove the cap on its electric vehicle tax exemption policy.

According to registration data, average monthly electric vehicle (EV) registrations rose from around 6,333 units prior to the policy change to 7,592 units during the 2025-26 financial year.

The policy shift, which came into effect on November 16, 2024, grants eligible electric vehicles registered in Telangana a 100% waiver on road tax and registration fees. The updated guidelines removed any ceiling on the number of vehicles that can benefit from the exemption. The tax relief initiative is scheduled to remain valid until December 31, 2026.

The exemption applies across multiple vehicle segments, including electric two-wheelers, private cars, commercial passenger vehicles, auto-rickshaws, light goods carriers, tractors, and specified buses.

Monthly registration figures indicate steady momentum in EV adoption across the state following the announcement. Vehicle registrations reached a peak of 10,705 units in October 2025, a surge that coincided with the festive season. Following this peak, monthly registrations largely stayed within the range of 8,000 to 9,000 vehicles, remaining consistently above the pre-exemption baseline.

The policy also spurred growth in the commercial transport sector. Commercial electric vehicles, including auto-rickshaws, cabs, goods carriers, and buses, saw the quickest initial uptake, with registrations rising 17% immediately after the tax exemptions were implemented. Monthly commercial EV registrations later stabilised at approximately 800 vehicles per month during the 2025-26 financial year.