The Madhya Pradesh government has introduced the Electric Vehicle (EV) Policy 2025 to accelerate the adoption of electric mobility in the state. The policy aims to enhance local manufacturing, improve charging infrastructure, and provide various incentives to consumers and manufacturers. It builds on the success of the previous EV policy introduced in 2019, which led to the registration of over 1.48 lakh EVs in the state. However, technological advancements, changing consumer preferences, and environmental concerns have necessitated an update to the existing framework.
The new policy aligns with national initiatives, such as the PM E-Drive scheme, which has a financial outlay of ₹10,900 crore to support EV adoption. The Madhya Pradesh government has set ambitious targets for EV penetration, including making cities like Bhopal, Indore, Jabalpur, Gwalior, and Ujjain model EV cities. The policy aims for 40% of new two-wheeler registrations and 70% of three-wheeler registrations to be electric by the end of the policy period. Additionally, it mandates that all government vehicles transition to EVs within the same timeframe.
To support EV adoption, the policy offers financial incentives, such as subsidies on vehicle purchases, tax exemptions, and interest subvention on loans. Two-wheelers can receive a subsidy of up to ₹10,000, while three-wheelers are eligible for up to ₹20,000. For electric cars, the subsidy is set at ₹50,000, with additional benefits such as waived registration fees and tax exemptions. The policy also promotes retrofitting conventional vehicles with electric powertrains, offering financial incentives for conversion.
A key focus of the policy is the expansion of charging infrastructure. The government aims to establish small, medium, and large charging stations across cities and highways. Charging station operators will receive capital subsidies of up to ₹10 lakh for large facilities. Battery swapping stations are also encouraged, with incentives provided to the first 100 installations. The state plans to revise building regulations to ensure new constructions are “EV ready” and mandates that petrol pumps install at least one charging point.
The policy also prioritizes local manufacturing and skill development. Incentives are available for businesses setting up EV and component manufacturing units, with subsidies ranging from ₹15 lakh for micro industries to ₹20 crore for mega industries. The government will also offer interest subvention on loans and provide employment generation incentives to companies hiring workers in the EV sector. A single-window clearance system is introduced to simplify the approval process for new manufacturing units.
Battery recycling and end-of-life management are critical components of the policy. The state encourages the refurbishment and reuse of EV batteries and supports the development of battery recycling facilities to recover valuable materials like lithium, nickel, and cobalt. The policy aligns with national guidelines on battery waste management and mandates the establishment of an online registry for tracking battery disposal.
In addition to financial and regulatory support, the policy includes measures to raise public awareness about the benefits of EVs. The government plans to launch campaigns to educate consumers, address misconceptions, and encourage wider adoption. Public transport electrification is also a priority, with a target of 40% of new bus registrations being electric.
The Madhya Pradesh Electric Vehicle Policy 2025 represents a comprehensive effort to transition the state’s transport sector towards sustainability. By combining incentives for consumers, support for manufacturers, investment in infrastructure, and environmental initiatives, the policy aims to position Madhya Pradesh as a leading state for EV adoption in India.
