MP EV Policy 2025: Capital Subsidies and Support for Manufacturing Growth

Madhya Pradesh has unveiled its comprehensive Electric Vehicle (EV) Policy 2025, a five-year plan designed to accelerate EV adoption and establish the State as a leading EV manufacturing center in India.

The State government has launched this policy just before the Global Investors Summit (GIS) 2025 in Bhopal (February 24-25). The policy focuses exclusively on Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs), excluding hybrids, and offers a robust framework of incentives, infrastructure development, and skill-building initiatives.

The policy provides a wide range of incentives for various EV categories. Electric cycles receive INR 5,000 subsidy (first 30,000 units). Two-wheelers get INR 10,000 or INR 5,000/kWh subsidy, plus 100 percent tax and registration fee exemptions. Three-wheelers and cars also receive subsidies, interest subventions, and scrapping incentives. Mandatory EV parking (20 percent in new societies, 25 percent in public/commercial spaces/government offices) is a key feature. Light commercial vehicles benefit from subsidies and tax breaks.

A 40 percent electric bus adoption target is set for public transport corporations. Subsidies and tax exemptions are provided for e-buses, with priority timings for inter-city e-buses, along with charging infrastructure support on intercity routes.

Recognising heavy-duty vehicle emissions, Madhya Pradesh will pilot electric trucks (5-55 tonne GVWR) and tractors, offering 20 percent upfront subsidies and mandating data sharing. Zero-emission trucks and tractors get 100 percent road tax and registration charge exemptions.

Retrofitting existing vehicles with electric powertrains is encouraged with incentives for e-2W, e-3W, and e-4W conversions. Additional incentives include a 50 percent toll tax exemption (first year), shared incentives between vehicle and battery owners, and benefits for state government employees. Green number plates and 'Green Zones/E-mobility Zones' are also planned.

The policy prioritises charging infrastructure development. Setting up Public Charging Stations (PCS) is de-licensed. Financial incentives are available for various PCS types. The 'EV Tarang' portal streamlines PCS deployment. Mandatory EV-ready buildings, private charging point encouragement with property tax rebates, and favourable electricity tariffs are included. Renewable energy integration and V2G are emphasised. Petrol pumps must have at least one EV charging point.

Madhya Pradesh aims to attract EV and component manufacturers through single-window clearance, capital subsidies (varying by industry size), employment generation incentives, interest subventions, and stamp duty and SGST reimbursements. A manufacturing land bank will be created, and quality certification and intellectual property incentives are offered.

The policy focuses on battery reuse and recycling, with guidelines and incentives. Research and innovation are promoted through Centres of Excellence, incubation centres, and testing labs.

EV-related courses will be integrated into ITIs and engineering colleges, with free EV repair training for professionals. Vocational courses will be designed with industry partners, and stipends will be provided.

Public awareness campaigns will be conducted. OEMs must submit consumer awareness strategies. The UDHD is the nodal department, and the MP-EVPB is the coordinating body. The policy is valid for five years. The policy aims to create a sustainable EV ecosystem, driving economic growth and cleaner air in Madhya Pradesh. Its success depends on effective implementation and addressing infrastructure and adoption challenges.