Haryana Announces 100% Motor Vehicle Tax Exemption for Electric Vehicles Priced Up to ₹30 Lakh

Buying an electric vehicle in Haryana is set to become significantly cheaper after the state government approved a revised Motor Vehicle Tax structure that grants a 100% tax exemption for eligible battery electric vehicles (BEVs) priced up to ₹30 lakh. The decision was approved by the Haryana Cabinet under the chairmanship of Chief Minister Nayab Singh Saini and is expected to accelerate electric vehicle adoption while reducing the upfront cost of ownership for buyers.

The revised tax benefit applies to newly purchased and registered electric two wheelers, three wheelers and four wheelers in Haryana. Electric vehicles with an ex showroom price above ₹30 lakh will continue to receive a 50% Motor Vehicle Tax exemption, extending the benefit to premium electric models as well.

The announcement marks one of the biggest updates to Haryana's EV policy since 2022. By replacing the earlier limited rebate structure with a wider tax exemption, the government aims to encourage more residents to register their vehicles within the state, reduce dependence on fossil fuel vehicles and support India's transition towards cleaner mobility.

Policy at a Glance

Policy Highlights	Details
100% Tax Exemption	Battery electric vehicles up to ₹30 lakh
50% Tax Exemption	Battery electric vehicles above ₹30 lakh
Eligible Vehicles	Electric two wheelers, three wheelers and four wheelers
Applicable On	New vehicles purchased and registered in Haryana
Additional Benefit	1% Motor Vehicle Tax rebate for women registering non transport vehicles

Revised Motor Vehicle Tax Structure

Ex Showroom Price	Motor Vehicle Tax Benefit
Up to ₹30 lakh	100% Tax Exemption
Above ₹30 lakh	50% Tax Exemption

The revised structure replaces Haryana's earlier incentive, under which electric vehicles were eligible for only a 20% rebate on one time Motor Vehicle Tax. The government believes the enhanced exemption will make electric vehicles more affordable, encourage local registrations and strengthen the state's clean mobility ecosystem.

Old vs New EV Tax Policy

Vehicle Category	Earlier Policy	Revised Policy
Battery Electric Vehicles	20% Tax Rebate	100% Tax Exemption (Up to ₹30 lakh)
Premium Electric Vehicles	Standard Tax	50% Tax Exemption
CNG Vehicles	20% Tax Rebate	No Change

Popular Electric Vehicles Eligible Under the New Policy

Electric Vehicle	Approx. Ex Showroom Price	Eligible
MG Comet EV	₹7.4 lakh – ₹10 lakh	Yes
Tata Tiago EV	₹8 lakh – ₹11.2 lakh	Yes
Tata Punch EV	₹10 lakh – ₹15 lakh	Yes
Tata Nexon EV	₹13 lakh – ₹17 lakh	Yes
MG Windsor EV	₹14 lakh – ₹18 lakh	Yes
Mahindra XUV400	₹16 lakh – ₹18 lakh	Yes
Hyundai Creta Electric	₹18 lakh – ₹24 lakh	Yes
Mahindra BE 6	₹19 lakh – ₹27 lakh	Yes
Mahindra XEV 9e	₹22 lakh – ₹30 lakh	Yes
BYD Atto 3	₹24 lakh – ₹29 lakh	Yes
Hyundai Ioniq 5	Around ₹46 lakh	50% Exemption
Kia EV9	Above ₹1 crore	50% Exemption

Prices are approximate ex showroom prices and may vary by variant and city.

Estimated Tax Savings for Buyers

EV Price	Estimated Tax Saving*
₹8 lakh	Up to ₹48,000
₹10 lakh	Up to ₹60,000
₹15 lakh	Up to ₹90,000
₹20 lakh	Up to ₹1.2 lakh
₹25 lakh	Up to ₹1.5 lakh
₹30 lakh	Up to ₹1.8 lakh

Estimated using a 6% Motor Vehicle Tax rate. Actual savings may vary depending on vehicle category and applicable registration charges.

Who Will Benefit the Most?

The revised policy is expected to benefit first time EV buyers, families upgrading from petrol or diesel vehicles and businesses looking to add electric vehicles to their fleets. Since most electric cars currently available in India are priced below ₹30 lakh, a large section of buyers will be eligible for the complete tax exemption. Lower registration costs could make electric vehicles a more attractive option compared with conventional internal combustion engine vehicles, especially as fuel prices and running costs continue to influence purchasing decisions.

Manufacturers including Tata Motors, Mahindra, MG Motor, Hyundai and BYD are also likely to benefit from stronger demand, as many of their popular electric models fall within the ₹30 lakh eligibility limit. Increased affordability could help drive higher sales while supporting the expansion of charging infrastructure and related services across the state.

Additional Benefit for Women

Apart from the revised EV policy, the Haryana Cabinet has approved a 1% rebate in Motor Vehicle Tax for women registering non transport vehicles in their own name. The incentive is intended to encourage greater vehicle ownership among women while complementing the broader changes introduced under the revised tax framework.

How the Policy Could Boost Haryana's EV Market

The revised Motor Vehicle Tax structure is expected to encourage more vehicle buyers to register their electric vehicles within Haryana instead of neighbouring states, where lower registration costs have previously attracted buyers. Higher registrations could increase state revenue from related services while strengthening Haryana's position as an important market for electric mobility.

The policy also aligns with India's broader objective of increasing electric vehicle adoption and reducing carbon emissions. As manufacturers continue launching new electric cars across different price segments, lower registration costs are expected to improve affordability and encourage faster adoption of cleaner transportation across urban and semi urban areas.

Why This Decision Matters

The revised policy removes one of the biggest upfront costs associated with buying an electric vehicle. Instead of limiting incentives to a fixed number of registrations as under the 2022 policy, Haryana has introduced a broader benefit covering all eligible battery electric vehicles priced up to ₹30 lakh. The move is expected to support consumers, manufacturers and the state's long term clean mobility goals while making EV ownership more financially attractive.

Which electric vehicles qualify for the 100% tax exemption?

Battery electric two wheelers, three wheelers and four wheelers with an ex showroom price of up to ₹30 lakh that are purchased and registered in Haryana.

What happens if an EV costs more than ₹30 lakh?

Electric vehicles priced above ₹30 lakh will receive a 50% Motor Vehicle Tax exemption.

Has anything changed for CNG vehicles?

No. CNG vehicles will continue to receive the existing 20% Motor Vehicle Tax rebate.

Is the exemption available only in Haryana?

Yes. The tax benefits apply only to eligible electric vehicles registered within Haryana.

When does the new policy apply?

The revised tax structure takes effect following the Haryana Cabinet's approval and applies according to the state's implementation guidelines.