Hyderabad: Telangana’s decision to remove the cap on its electric vehicle (EV) tax exemption has boosted EV adoption, with registrations rising by around 20%. Average monthly EV registrations increased from about 6,333 before the exemption to 7,592 during FY 2025-26.The policy change, introduced on Nov 16, 2024, provides eligible EVs registered in Telangana with a 100% waiver of road tax and registration fees, without any cap on the number of vehicles. The exemption covers electric two-wheelers, private cars, commercial passenger vehicles, auto-rickshaws, light goods carriers, tractors and certain buses, and is valid until Dec 31, 2026.Monthly registration data shows that the EV market gained momentum steadily through the year. Registrations peaked at 10,705 vehicles in Oct 2025, coinciding with the festive season. They remained in the range of 8,000 to 9,000 vehicles a month for much of the subsequent period, well above the pre-exemption monthly baseline.The growth was not limited to private vehicles. Commercial EVs—including autos, cabs, goods carriers and buses—recorded the fastest initial response, with monthly registrations rising 17% immediately after the exemption. Registrations subsequently stabilised at around 800 vehicles a month during FY2025-26.
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