Hyderabad: A tax waiver introduced to push electric vehicles (EVs) into the mainstream appears to have delivered a sharp jump in registrations, prompting the Telangana transport department to seek an extension of the incentive beyond the current deadline.Before the tax exemption was introduced, Telangana had recorded 47,730 EV registrations. After the govt introduced the exemption on life tax and quarterly tax in Nov 2024, registrations rose sharply, with 91,572 EVs registered during the 2025-26 financial year alone.The department is now preparing a proposal to extend the tax concession and is likely to submit it to the state govt within the next couple of days. The existing scheme covers EVs purchased up to Dec 2026.A senior transport department official said the sharp increase in registrations showed that tax incentives could play an important role in encouraging people to switch to electric mobility.“The increase in EV registrations after the tax exemption shows that the incentive has made a significant difference to buyers. We want to continue the momentum and encourage more people to shift to electric vehicles,” the official said.The growth has continued into 2026, with the state recording around 1.58 lakh new EV registrations by June, according to transport department data. Officials believe extending the tax benefit would help sustain the trend and attract more buyers to electric cars, two-wheelers and other EV categories.The incentive, however, has come at a cost to the state exchequer. The govt is estimated to have foregone around Rs 1,483 crore in revenue between Nov 2025 and June 2026 because of the tax exemption.Officials said the revenue loss was being weighed against the longer-term benefits of promoting electric mobility, including lower vehicle emissions, reduced dependence on conventional fuels and lower running costs for consumers. Depending on the vehicle, an electric car buyer can save up to around Rs 1 lakh through the tax exemption.With EV numbers rising, the transport department is also turning its attention to a key infrastructure gap: the shortage of charging stations outside Hyderabad.Officials are working on plans to facilitate setting up of charging stations at district and mandal headquarters. The department is also looking to involve EV manufacturers in expanding the charging network across the state.Officials are expected to write to vehicle manufacturers seeking their participation in setting up charging facilities. Where the govt cannot establish stations directly, manufacturers and private players would be encouraged to invest in the infrastructure.The proposed extension of the tax waiver, along with expansion of charging infrastructure, is aimed at sustaining the rapid growth in EV registrations and accelerating Telangana’s shift towards electric mobility.
