Crime Today News
With the reduction in electric vehicle subsidies and an uptick in prices across the country, the electric vehicle car penetration has declined, with registrations slowing down last year and the trend is continuing in 2025 as well.
According to data from Vahan, which tracks vehicle registrations in the country, in CY2022, electric four-wheeler registrations were at 33,267 units, and it more than doubled to 73,299 units in CY2023 due to subsidies, lower prices and more launches. However in CY2024, EV registrations fell to 67,407 units. In 2025, the electric vehicle registrations have dropped month-on-month; in January 4,117 vehicles were registered; 2,665 in February, and 1,720 so far in March.
State governments have started to impose road and other taxes on electric vehicles, leading to price increases across the country. Experts have pointed out that this would slow down vehicle penetration.
Tax burden
“The additional tax on premium electric vehicles would slow broader consumer adoption,” Nikhil Dhaka, Vice President, Primus Partners told businessline.
The Indian government is targeting 30 per cent electric vehicle penetration by 2030. Presently, the electric vehicle penetration is nearly 2 per cent. The penetration is expected to reach 9 per cent by FY30, according to Nomura. The vehicle penetration is expected to grow to 5 per cent by FY27.
‘Offer subsidies’
“The government should think about continuing the subsidy which will help in the electric vehicle penetration across the country,” said Manish Raj Singhania, Chairman, of Research & Academy, Federation Of Automobile Dealers Association.
The Maharashtra State government will be implementing a 6 per cent tax on premium electric vehicles priced at ₹30 lakh from April.
“The implementation of road tax by the Maharashtra government would lead to an increase in on-road price for EVs in the State. The same is likely to be offset, to an extent, by an expectation of a gradual decline in battery prices,” said Rohan Kanwar Gupta, Vice President & Sector Head, Corporate Ratings, ICRA Limited.
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