The Andhra Pradesh government is accelerating electric mobility adoption with purchase subsidies, road tax exemptions, and financial support for charging infrastructure under its Sustainable Electric Mobility Policy 2024–29. Transport Minister Mandipalli Ramprasad Reddy said the Andhra Pradesh EV Incentives are designed to benefit vehicle buyers, manufacturers, charging-station operators, and emerging mobility startups. The government aims to position the state as one of India’s leading electric mobility hubs by 2029.
The policy offers up to a 5% purchase subsidy on eligible electric two-wheelers, autos, buses, transport vehicles, and tractors until March 2027. Registered EVs receive a five-year road tax exemption, while the first 5,000 charging stations can claim 25% installation support capped at ₹3 lakh per unit.
What Andhra Pradesh EV Incentives Offer Buyers
| Electric vehicle category | Purchase subsidy | Road tax benefit | Validity/important detail |
|---|---|---|---|
| Electric scooters and motorcycles | Up to 5% of the ex-showroom price | Five-year road tax exemption | Purchase subsidy available until March 2027 |
| Electric auto-rickshaws | Up to 5% of the ex-showroom price | Five-year road tax exemption | Includes eligible electric three-wheelers |
| Electric buses | Up to 5% of the ex-showroom price | Five-year road tax exemption | Intended to support cleaner public transportation |
| Electric transport vehicles | Up to 5% of the ex-showroom price | Five-year road tax exemption | Covers eligible vehicles registered for transport use |
| Electric tractors | Up to 5% of the ex-showroom price | Five-year road tax exemption | Purchase subsidy available until March 2027 |
| Electric cars | The minister’s announcement did not specify a separate 5% purchase subsidy for cars. | Five-year road tax exemption | The state aims to promote 20,000 new electric cars by 2029. |
| EV charging stations | Up to 25% of the installation cost, capped at ₹3 lakh per unit | Not applicable | Available for the first 5,000 charging stations |
Key Policy Benefits and Incentives
Direct Purchase Subsidy
EV buyers can receive a subsidy of up to 5% of the ex-showroom price when purchasing eligible electric two-wheelers, auto-rickshaws, buses, transport vehicles, or tractors. This benefit under the Andhra Pradesh EV Incentives will remain available until March 2027.
Five-Year Road Tax Exemption
Electric vehicles registered in Andhra Pradesh are eligible for a complete five-year road tax exemption. This benefit can substantially reduce the overall ownership cost for private buyers, commercial operators, and transport fleets.
Charging Infrastructure Support
Developers can receive financial assistance covering up to 25% of an EV charging station’s installation cost, subject to a maximum of ₹3 lakh per unit. The incentive applies to the first 5,000 charging stations established across Andhra Pradesh.
Electric Two-Wheelers
Buyers of eligible electric scooters and motorcycles can receive up to a 5% purchase subsidy, along with a five-year road tax waiver. The government aims to promote two lakh electric two-wheelers by 2029.
Electric Three-Wheelers and Auto-Rickshaws
Eligible electric auto-rickshaws can receive a subsidy of up to 5% of their ex-showroom price and a five-year road tax exemption. Andhra Pradesh is targeting at least 10,000 electric three-wheelers by 2029.
Electric Cars
The announcement did not explicitly include electric cars among the categories receiving the 5% purchase subsidy. However, electric cars registered in the state qualify for the five-year road tax exemption. The government wants to add 20,000 new electric cars by 2029.
Electric Buses and Transport Vehicles
Eligible electric buses and transport vehicles can receive up to a 5% purchase subsidy and a five-year road tax exemption. The state also plans to expand electric mobility across public transportation and progressively electrify the APSRTC fleet.
Electric Tractors
Electric tractors are included in the 5% purchase-subsidy programme. Eligible models registered in Andhra Pradesh can also receive the five-year road tax benefit, supporting cleaner agricultural transportation.
Andhra Pradesh Sets EV Adoption Targets for 2029
The TDP-led coalition government plans to promote two lakh electric two-wheelers, at least 10,000 electric three-wheelers, and 20,000 new electric cars by 2029.
The state also intends to expand electric mobility in public transportation. Its wider clean-transport programme includes moving the APSRTC fleet towards complete electrification, supported by electric-bus procurement and charging facilities at depots and bus stations.
These targets are intended to create demand across private mobility, commercial transportation, and mass transit.
Nationwide EV Sales Growth Supports State’s Push
Reddy said nearly 2.98 lakh electric vehicles were sold across India in August, representing year-on-year growth of 52.9%. He added that the EV share of the overall vehicle market had risen from 9.5% to 12.3%.
The figures cited by the minister point to growing consumer acceptance and reinforce the state government’s decision to expand the Andhra Pradesh EV Incentives for buyers and infrastructure developers.
E-Mobility Cities and Startup Ecosystem Planned
The policy goes beyond vehicle purchases and charging stations. Andhra Pradesh plans to develop dedicated e-mobility cities with integrated charging networks, cleaner public transport, and support for mobility innovation.
The government also wants to encourage startups working in areas such as battery technology, charging services, fleet electrification, software, and clean transportation.
A Major Green-Mobility Push for Andhra Pradesh
The combined package of purchase subsidies, road tax relief, charging-station assistance, and adoption targets could help reduce upfront EV costs and improve charging availability.
If implemented effectively, the Andhra Pradesh EV Incentives could accelerate consumer adoption, attract mobility investment, and support the state’s ambition to become a national leader in sustainable transportation.
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