According to reports, the Karnataka government is creating a new electric vehicle (EV) policy with the goal of expanding the clean mobility industry in the state during the following five years. Sources claim that the proposed legislation includes large incentives for producers and customers alike, aiming to establish Karnataka as a leader in the EV sector.
The exemption of road tax for electric and strong hybrid vehicles priced under ₹25 lakh is a prominent feature of the draft policy. The change is anticipated to increase demand for EVs throughout the state by lowering their price and appealing to a larger range of consumers.
The Karnataka government is looking into further demand-side incentives and concessions for EVs and hybrid vehicles in addition to tax exemptions. The ultimate goal is to help the state achieve its aggressive environmental targets while hastening the adoption of greener transportation options.
By 2029, the southern state hopes to have drawn ₹50,000 crore in investments in the clean mobility value chain.
The strategy is expected to provide incentives for the value of fixed assets up to 50% in order to entice businesses to establish operations or grow in Karnataka.
Furthermore, for a five-year term, new initiatives or sector expansions may be eligible for a production-linked incentive (PLI) of 1% of turnover.
Additionally, manufacturers may receive stamp duty exemptions and capital investment subsidies ranging from 15% to 25%, which would increase the state’s attractiveness to investors in the electric and hybrid car market.
