Lack of incentives pushes Telangana's EV sales into slow lane

HYDERABAD: Nationally, the sale of electric vehicles (EV) might be racing north. But back home in Telangana, it's still stuck in first gear. Currently, only 1% of the state's vehicular traffic-1.25 lakh of the total 1.65 crore automobiles, as per RTA-comprise EVs. This is a far cry from major states such as Karnataka, Maharashtra and Uttar Pradesh where these numbers range anywhere between 3.5 lakh and 6.5 lakh. In fact, Karnataka saw 1.6 lakh EVs being registered in 2023-24 alone.

Majority of EVs in Greater Hyderabad
Even Rajasthan, Bihar, Delhi, and Kerala have a higher number of EVs compared to Telangana that finds itself somewhere near the bottom of the chart with 1.1 lakh EV two-wheelers, 8,000 four-wheelers, and the remaining auto-rickshaws and goods vehicles. Majority of these vehicles are mapped to Greater Hyderabad limits. The consumption outside its boundaries is a miniscule 5%.

Experts attribute this slow drive to lack of incentives and sluggish infrastructure.

As per Telangana's existing EV policy for 2020-2030, first two lakh e-bikes get 100% exemption on road tax and registration. While the same benefit was initially extended to the first 5,000 four-wheelers, the number has now been increased to 8,000.

"The state needs to enhance coverage by creating more public charging stations and creating awareness on EVs," said Bandhan Bandhu Majumdar, associate professor at BITS Pilani Hyderabad and transportation planning, electric mobility researcher. Drawing examples from states like Kerala that offer free vehicle registration, exemption on road taxes along with toll exemption, and free parking, he said similar policy changes need to be brought about in Telangana to push up EV sales.

Vehicle taxes in Telangana higher

Stressing the need for revising the incentives, another expert Ishanth Sharma at BITS said in Telangana, vehicle taxes are comparatively higher than in other states, and this is an issue that the govt needs to address, especially when it comes to EVs.

"The scarcity of charging stations, unlike the abundance of fuel outlets, is another factor that discourages people from adopting EVs. It is crucial for states to establish charging stations near the ORR. The govt should introduce the park-charge-drive concept in Hyderabad," he said.

High cost hinders purchases

Officials at Telangana Renewable Energy Development Corporation Ltd, (TGREDCO), the nodal agency for implementing EV infrastructure in Telangana, meanwhile, said the main factor hindering EV adoption is the high costs.

"Despite incentives provided through the state EV policy and the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, prices of electric two-wheelers and cars remain higher than traditional vehicles. This price disparity is the main reason why a large number of vehicle owners are reluctant to make transition to EV," claimed an TGREDCO official.


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