Maharashtra has approved an additional ₹66.82 crore for Bajaj Auto, providing relief after electric two-wheeler subsidies exceeded the state’s original eligibility ceiling. The Cabinet, chaired by Chief Minister Devendra Fadnavis, took the decision on October 27, 2026. The Bajaj Auto EV Incentive covers 66,817 electric two-wheelers sold after the statewide limit of one lakh subsidized vehicles was exhausted.
The manufacturer had already passed the incentive benefits to customers at purchase and subsequently sought reimbursement. The special Cabinet approval addresses those pending claims while also drawing attention to the challenges of managing demand-driven electric vehicle subsidy programmes.
Maharashtra’s Cabinet approved ₹66.82 crore as a special reimbursement for 66,817 Bajaj Auto electric two-wheelers sold beyond the one-lakh statewide cap under its 2021 EV policy. The Bajaj Auto EV Incentive addresses earlier manufacturer claims; it is not a newly announced discount for buyers.
Key Highlights
- Approval: ₹66.82 crore.
- Coverage: 66,817 Bajaj Auto electric two-wheelers.
- Ceiling: One lakh subsidized electric two-wheelers statewide, across manufacturers.
- Policy: Maharashtra Electric Vehicle Policy 2021.
- Status: Special Cabinet approval, not a general cap extension.
Why Did Maharashtra’s EV Subsidy Cap Run Out?
The 2021 policy offered incentives on newly registered electric vehicles, including two-wheelers, to encourage cleaner mobility. However, its ceiling of one lakh electric two-wheelers applied to the combined eligible sales of every manufacturer operating in Maharashtra, rather than to each company separately.
As EV sales accumulated, manufacturers collectively reached the cap. Vehicles sold beyond that point were outside the original subsidy allocation, creating a reimbursement problem for companies that had already reduced customers’ purchase prices.
How the Incentive Reimbursement Works
Under the policy, the electric vehicle manufacturer provides the approved benefit upfront, reducing the amount an eligible buyer pays. The manufacturer then submits a claim to the state for repayment.
This arrangement means customers receive their discount immediately, while manufacturers must await public reimbursement. When the aggregate vehicle ceiling was exhausted, Bajaj Auto’s claims for another 66,817 electric two-wheelers remained unresolved.
The approved Bajaj Auto EV Incentive provides a route to clear this specific claim, subject to the government’s subsequent disbursement process. Cabinet approval does not itself confirm that the entire amount has already been paid.
Why Was Bajaj Auto Given Special Approval?
The Cabinet cited Bajaj Auto’s contribution to Maharashtra’s industrial sector and its investments within the state. It therefore authorized ₹66.82 crore under the existing 2021 policy as a special case.
The decision does not establish an automatic, policy-wide increase in eligible vehicles.
What Does This Mean for EV Buyers?
For customers, this concerns discounts already received at purchase. It does not establish a fresh ₹66.82 crore incentive scheme or promise additional refunds to individual owners.
For the industry, the Bajaj Auto EV Incentive highlights how rapidly exhausted subsidy ceilings can leave manufacturers financing discounts before receiving repayment. The approval may ease the company’s outstanding reimbursement burden while reinforcing the importance of predictable funding and transparent eligibility rules. Future incentive eligibility still depends on applicable rules and official approvals.
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