UP to offer EV incentives only to locally manufactured vehicles from Oct 14

Starting October 14, Uttar Pradesh will provide EV incentives only to vehicles that are manufactured, sold, and registered within the state, aiming to boost local production and employment

In a bid to boost the sector, the Uttar Pradesh (UP) government will restrict electric vehicle (EV) incentives only to vehicles manufactured and registered within the state, starting October 14, according to an NDTV report.

 

The development comes as part of the amended policy — UP Electric Vehicle Manufacturing Policy 2022 — aimed at increasing EV adoption, and prioritising ‘Made in UP’ vehicles to generate local employment, and attracting investment for both greenfield and brownfield EV plants in the state.

 

The policy will be applicable till October 13, 2027, NDTV reported.

 

Under the revised policy, the incentives will be extended to EVs that are manufactured, sold, and registered within Uttar Pradesh, NDTV reported.

   

According to UP Transport Commissioner BN Singh, the revised policy aims to strengthen UP's position as an EV manufacturing hub, reported Dainik Jagran. 

 

The existing policy provided incentives of up to ₹20 lakh, depending on the vehicle type: ₹5,000 for two-wheelers, ₹1 lakh for four-wheelers and electric goods carriers, and ₹20 lakh for buses. So far, 17,665 buyers have received subsidies, with 38,285 applications still pending, the NDTV report added. Last month, a senior government official also said the state had provided financial subsidies of around ₹950 crore to support its electric mobility roadmap.

 

In the financial year 2024-25 (FY25), UP recorded EV sales of around 370,000, surpassing Maharashtra (240,000), Karnataka (170,000), and Tamil Nadu (132,000). 

Other EV initiatives

The UP State Road Transport Corporation aims to increase its bus fleet from 13,000 to 25,000 by 2027. To aid this transition, electric depots equipped with 240 kW universal chargers are being established in eight cities, Business Standard reported last month.

 

Additionally, UP is developing 23 modern bus terminals under a public-private partnership, with a second phase planning 54 more terminals, 50 of which are already under construction.

 

The UP State Industrial Development Authority (UPSIDA) has also teamed up with Central Electronics Limited (CEL) to set up charging stations in industrial zones and integrate them with renewable energy sources.