The Maharashtra government has introduced a new 6% road tax on electric vehicles (EVs) priced above Rs 30 lakh (ex-showroom), effective from April 1, 2025. This move marks a significant policy shift in a state that was previously seen as a leader in promoting EV adoption. Under the earlier regime, buyers of premium EVs benefited from zero road tax and reduced registration fees, making models like the BMW iX1, BMW iX, and Mahindra XUV9e more affordable compared to their petrol or diesel counterparts. The new tax policy now erodes that pricing advantage, especially for luxury EV buyers.

Premium EVs to See a Major Price Hike

Models like the BMW iX1, which offers a claimed range of up to 440 km on a single charge, and the BMW iX, whose on-road price in India crosses Rs 1 crore in several cities, will now become even more expensive. The additional 6% tax could mean a hike of Rs 1–4 lakh, depending on the vehicle’s ex-showroom price. Luxury EVs from Mercedes-Benz (EQE SUV), Audi (e-tron range), Jaguar (I-Pace), and Volvo (EX30) will also be impacted. The Mahindra XEV,9e, top trim is pri Rs 30 lakh mark, and falls under this new tax slab.

Even as Tesla prepares to enter the Indian market with its first showroom in Mumbai’s Bandra Kurla Complex, its entry-level model may escape the hike if priced under Rs 30 lakh, given its model will be imported from China.

So, imagine, BMW iX1 which has an ex-showroom price of Rs. 49 Lakhs, it on-road price in Mumbai is Rs. 51.39 Lakhs. Add Rs. 6% Road Tax on the ex-showroom price which will be Rs. 2.94 Lakhs, it takes the on-road price of BMW iX1 to Rs. 54.33 Lakhs.

Industry Concerns and Market Reaction

According to FADA data, EVs accounted for only 3% of total car sales in India as of February 2025. The central government has set a 30% EV penetration target for 2030, and premium EVs play a key role in pushing this transition by showcasing advanced technology and sustainable performance. This new tax has triggered concern among automakers and prospective buyers. Many are rushing to complete purchases before April 1, while others are delaying or cancelling bookings. Several experts fear this could slow down premium EV growth and impact Maharashtra’s image as an EV-friendly state.

Some buyers may even consider registering their EVs in states like Telangana or Delhi, which still offer better incentives or lower road taxes. This shift could hurt Maharashtra’s dealer networks, local employment, and tax revenue in the long run.

Entry-Level EVs Remain Unaffected

EVs priced below Rs 30 lakh remain exempt from the new tax. This includes popular models like the Tata Nexon EV, Punch EV, Curvv EV, Harrier EV, MG ZS EV and Windsor, and Mahindra XUV400. These continue to benefit from 5% GST and zero road tax, keeping them attractive in the mass-market segment.

However, the industry is cautious that similar levies might be extended to mid-range EVs in the future. Buyers in the Rs 20–30 lakh range could now become hesitant, unsure about the policy direction.

Final Thoughts

The Maharashtra EV tax aims to generate additional revenue and bring parity between EVs and ICE vehicles in the premium segment. However, the timing has raised questions, especially with global brands like Tesla, Kia, and Volvo planning to expand their EV portfolios in India.

The BMW iX1 and the Mahindra XEV.9e are now central to the EV tax conversation in Maharashtra. Whether this policy deters buyers or prompts revision will become clearer in the coming months as data and feedback roll in.