Madhya Pradesh Electric Vehicle Policy 2025
100%
MV Tax & Registration Fee Exemption
₹25,000
Maximum Retrofitting Incentive (e-Car)
30%
Capital Subsidy on Charging Stations
5 Cities
Model EV Cities
Why the policy exists
Madhya Pradesh notified its first EV policy in 2019, delivering an 88.6% CAGR in EV registrations from FY 2018-19 to FY 2023-24 and taking cumulative registrations past 1.48 lakh. The 2025 policy, notified 22 February 2025, supersedes it — adjusting incentives, adding segments and building out infrastructure. It is active for five years from notification, with the Urban Development & Housing Department as nodal department and MPPMCL as nodal agency for charging infrastructure. Model EV Cities are Bhopal, Indore, Jabalpur, Gwalior and Ujjain.
Two structural points govern everything below. First, the policy applies only to Battery Electric Vehicles and Fuel Cell Electric Vehicles — no kind of hybrid is covered, including plug-in, series and strong hybrids, which the policy defines only to exclude. Second, incentives run on two independent tracks: a regulatory track (tax and registration exemption) available to every qualifying purchaser, and a separate capped retrofitting cash incentive available only to owners converting an existing ICE vehicle. Widely circulating per-kWh purchase subsidies and capped unit counts belong to the 2019 policy or its draft revision and are not part of this notification.
Targets by end of the policy period
| Segment | Target |
|---|---|
| Electric two-wheelers | 40% of all new registrations; 100% of new registrations in the commercial fleet |
| Electric three-wheelers | 80% of all new registrations, passenger and freight |
| Electric four-wheelers | 15% of all new registrations |
| Electric buses | 40% of all new registrations |
| State government vehicle procurement | 80% of all forms of state government vehicles including Corporations, Boards and Ambulances, where they fall under 2W/3W/4W categories and a commercially available EV equivalent exists |
Regulatory exemption and retrofitting incentive by segment
| Segment | Regulatory Incentive | Retrofitting Incentive |
|---|---|---|
| e-2W | 100% MV tax and registration fee exemption, till 1st year of policy implementation | ₹5,000 per vehicle, till 1st year |
| e-3W | 100% exemption, till 1st year | ₹10,000 per vehicle, till 1st year |
| e-Car | 100% exemption on e-cars with ex-factory price up to ₹20 lakh, till 1st year | ₹25,000 per vehicle, till 1st year |
| e-LCV | 100% exemption, till 1st year | — |
| e-Buses (non-government and government) | 100% exemption till 2nd year; permits exempted by the Transport Department | — |
| e-Truck, e-Tractor, e-Ambulance | 100% exemption, till 2nd year | — |
The 1-year-versus-2-year split is the first fact to check before quoting a figure. Personal-use categories — 2W, 3W, e-Car, LCV — get the exemption only for the 1st year of policy implementation, while heavier and public-purpose segments get it for the 2nd. A client buying a personal e-car needs the expiry reckoned from the notification date of 22.02.2025, not from their purchase date. Separately, the ₹20 lakh ex-factory ceiling on the e-Car exemption is a hard cliff, not a slab: a vehicle at ₹20.5 lakh gets no regulatory exemption at all.
- •All incentives are available only if the EV is purchased and registered in Madhya Pradesh — on a plain reading, a vehicle purchased elsewhere and later re-registered in MP does not qualify.
- •Two-wheelers must meet PM E-Drive criteria or ARAI/ICAT specifications and carry an Advanced Battery. Three-wheelers are confined to L5-N and L5-M categories. Cars extend to L7 quadricycles and M-category EVs, limited to Advanced Battery and Fuel Cell EVs.
- •Retrofitting requires certified technology from ARAI, ICAT or other MoRTH-approved agencies.
- •Electric trucks and tractors are an emerging pilot segment; comprehensive provisions will be developed during the third year of the policy period.
- •Green number plates are issued to all EVs registered in MP — white lettering for personal use, yellow for commercial.
- •Parking mandate: 20% of open visitor parking in new RWA housing societies exclusively for EVs, with ICE vehicles barred even if vacant; 25% of public road-side parking, education institutions, commercial complexes and government offices reserved for EVs by end of the policy period.
Charging infrastructure and capital subsidy
Setting up a Public Charging Station is a de-licensed activity — any individual or entity may set one up subject to technical protocols and Ministry of Power, CEA and MPERC specifications. The Distribution Licensee is obliged to provide the connection under the MP Electricity Supply Code 2021.
| Station Type | Vehicle Category | Connection | Capital Subsidy |
|---|---|---|---|
| Small | 2W & 3W, city | Low Tension, connected load up to 150 HP / 112 kW | 30% of equipment value, first 500 stations, max ₹1,50,000 |
| Medium | 2W, 3W, cars & e-LCV, city and highways | Low Tension | 30%, first 300 stations, max ₹3,00,000 |
| Large | 2W, 3W, cars, e-LCV & heavy-duty, city and highways | High Tension, above 150 HP / 112 kW | 30%, first 200 stations, max ₹10,00,000 |
| Battery Swapping Stations | — | — | 30% of eligible fixed capital investment, first 300 stations, max ₹5,00,000 |
The subsidy caps run on a first-come basis with no stated renewal. Each tier's 30% subsidy is limited to a fixed count of stations — first 500, 300, 200 and 300 respectively — with no provision in the notified text for what happens once that count is exhausted mid-policy. For a CPO or BSO planning a multi-station rollout, sequencing the first application early and tracking cumulative disbursal via MPPMCL and UDHD is a genuine first-mover advantage.
- •CPOs choose their own charging standards but must share station data with DISCOM; layout must ensure accessibility for differently-abled individuals, and incentives are disbursed only on the nodal agency's confirmation that accessibility requirements are met.
- •CPOs and BSOs must accept cash, cards, mobile wallets, UPI and the common mobility card.
- •10% of parking spots in existing and new government buildings must have EV chargers; ISBTs, bus terminals and Municipal Corporation public parking are mandated to have charging stations.
- •One charging station every 20 km along highways, plus a fast-charging station every 100 km for long-range and heavy-duty EVs, one on each side; a further ambition of one station per 1 km × 1 km grid.
- •New permits for commercial complexes, housing societies and townships with built-up area of 2,000 sq. m and above must have charging stations with at least 10% of parking spots equipped. Existing RWAs must process NOCs within 7 working days.
- •Building bye-laws to be revised per the Model Building Bye-Laws 2016, with premises enabling load for all charging points running simultaneously at a 1.25 safety factor.
Manufacturing, recycling, skilling and implementation
The manufacturing incentive is a cross-reference, not a self-contained schedule. Clause 14 points to the Madhya Pradesh Industrial Promotion Policy 2025 for the actual quantum, so an EV or component manufacturing advisory must be run against that policy's capital subsidy schedule, land allotment terms and employment-linked incentives — not against this EV policy, which signals intent and eligibility only. The reuse and recycling incentives similarly borrow wholesale from the manufacturer schedule.
- •EV batteries typically need replacement at 70–80% of original capacity, with about two batteries over a 15-year life. All incentives applicable to EV and component manufacturers extend to refurbishers exploring multi-life solutions, and to battery recyclers recovering nickel, cobalt and lithium.
- •EVs are to be disposed of through a vehicle scrap facility registered with the MP Pollution Control Board, governed by the Battery Waste Management Rules 2022.
- •Industry partners collaborating with academic institutions for a Centre of Excellence can draw a one-time grant of up to ₹2 crore for research and testing equipment.
- •EV courses to be incorporated across 53 polytechnic colleges and 271 ITIs; free hands-on EV-repair training for the repair-shop segment, at least two sessions annually with minimum 50 participants each, co-developed with the Automotive Skill Development Council.
- •Students in EV skill courses affiliated with the Board of Technical Education and State Council for Vocational Training receive a stipend under the Mukhya Mantri Seekho Kamao Yojna.
- •Green Zones and e-mobility zones planned within Model EV Cities for exclusive EV use, including tourist villages, technology hubs and business districts.
What is settled today and what still rests on a document not yet public. The incentive rates, targets, charging-station tiers and subsidy caps are notified and operative from 22.02.2025. What remains outside this notification and dependent on separately-issued Operating Guidelines includes the annual government-fleet EV-procurement schedule, the detailed MP-EVPB composition and powers, the parking-mandate reservation percentages for women and differently-abled persons, and the workplace charging policy. State incentive eligibility from this policy directly, and flag procedural mechanics as pending Operating Guidelines rather than assuming a default process.
Source: Madhya Pradesh Electric Vehicle Policy 2025, Urban Development & Housing Department, Government of Madhya Pradesh, dated 22.02.2025, expressly superseding the MP EV Policy 2019. All incentives are in addition to Central Government incentives and are accessed through the MP EV Tarang portal.