MP EV Subsidy 2026: Electric Scooter, Car & Road Tax in Madhya Pradesh

Is there a subsidy on electric scooters in MP?

Short answer: no. Madhya Pradesh has no state cash subsidy on electric two-wheelers, and it never has had one. Neither the 2019 policy nor the notified 2025 policy contains a purchase incentive for scooters.

This is the single most searched question about EVs in Madhya Pradesh, and almost every page answering it gives the wrong number. The figure in circulation is ₹10,000 per electric two-wheeler, sometimes written as ₹5,000 per kWh capped at ₹10,000, with eligibility limited to scooters under ₹1.5 lakh ex-factory and a cap of one lakh units.

That figure appeared in the draft of MP Electric Vehicle Policy 2025, released for consultation in February 2025 and reported at the time by trade press including Autocar Professional. In the same month, the state Finance Department objected to the cost of five years of demand incentives, and a Senior Secretary Committee decided that cash support would go to charging infrastructure instead of vehicle buyers. When the policy was notified on 29 March 2025, the purchase-incentive column was gone.

You can check this yourself. The notified policy document published by Invest MP lists, for each vehicle category, only a regulatory incentive and a retrofitting incentive. There is no demand incentive and no per-kWh figure anywhere in it. If a page tells you MP pays ₹10,000 on a scooter, ask it which notification number that comes from. There isn't one.

The practical consequence for a scooter buyer in Bhopal, Indore, Jabalpur or Gwalior in 2026: the only support you have had was the central PM E-DRIVE incentive, and that scheme's two-wheeler window closed on 31 July 2026. There is no state top-up to claim.

Where the ₹10,000 and ₹50,000 figures actually come from

It is worth laying this out plainly, because the confusion is not random. Every incorrect figure on this topic traces back to one document, and different sites garbled it in different directions.

MP road tax and RTO charges on EVs in 2026

An EV registered in Madhya Pradesh today pays full motor vehicle tax and full registration fee. The 100% waiver covered vehicles registered on or before 26 March 2026 only.

This is the part of MP's policy that was genuinely worth money, and it is the part most pages get wrong in the opposite direction — they still describe it as currently available.

The MP Transport Department operationalised the waiver through notification 857/2320711/2024/VIII in April 2025. It gave a 100% exemption from motor vehicle tax and registration fee to electric two-wheelers, three-wheelers, cars with an ex-factory price up to ₹20 lakh, and light commercial vehicles — provided the vehicle was registered on or before 26 March 2026. Commercial categories were given a longer window.

In late March 2026, the Commissioner of Urban Administration and Development confirmed publicly that the waiver for two-wheelers, three-wheelers and four-wheelers had expired on 27 March 2026. A proposal to extend it by two more years was sent to the Transport Department for its opinion. As of this page's last review there is no public notification confirming that the extension has been approved, so do not budget for it.

What MP EV Policy 2025 does give you

The policy is not empty — the money simply went somewhere other than vehicle buyers. Its cash incentives are aimed at charging infrastructure and at manufacturing, on the reasoning that supply-side support outlasts a cheque handed to one buyer.

For anyone thinking about the business side rather than the buying side, that is the opportunity in Madhya Pradesh right now. A public charging station attracts a capital subsidy of roughly a quarter to a third of equipment value, with caps rising by station size, and the policy sets deployment targets of a charging point every 25 km on highways and fast charging every 100 km on major corridors.

The policy also carries parking benefits at urban local body facilities, retrofitting support, and a set of 2030 adoption targets — 40% of new two-wheeler registrations electric, 70% of three-wheelers and 15% of four-wheelers. Those targets matter to you only as a signal of where the state intends to push, not as money in your pocket.

What an MP buyer can actually save in 2026

With no state cash subsidy and the road-tax waiver lapsed, the honest arithmetic for a Madhya Pradesh buyer comes down to a smaller set of items than most pages imply.

• GST at 5% on the vehicle, against 18% to 40% on an equivalent petrol or diesel model. This is a central concession, applies everywhere in India, and is by far the largest single saving on an electric car.
• Running cost. This is where an EV in MP genuinely wins. At typical MPPKVVCL and MPMKVVCL domestic tariffs, charging at home costs a fraction of petrol per kilometre, and it is the saving that compounds every month rather than arriving once.
• PM E-DRIVE for three-wheelers, which continues to 31 March 2028 at ₹2,500 per kWh. The two-wheeler window under the same scheme closed on 31 July 2026.
• Section 80EEB income tax deduction on EV loan interest, up to ₹1.5 lakh — but note the sanction window for eligible loans ran from 1 April 2019 to 31 March 2023, so a loan taken today does not qualify. Several pages still list this as a current benefit. Check with a tax adviser rather than assuming.
• If the extension proposal is approved, the road-tax waiver would return. Watch for a Transport Department notification rather than a news headline, and do not time a purchase on it.

How to claim an EV subsidy in MP

There is no MP EV subsidy portal, because there is no state cash subsidy to claim. Any site describing a Direct Benefit Transfer process for MP is describing something that does not exist.

This deserves saying clearly, because a lot of pages carry a confident five-step claim process for Madhya Pradesh that is copied from states which genuinely run one, such as Maharashtra or Rajasthan.

For the road-tax and registration-fee exemption, while it was live, nothing was claimed by the buyer at all. It was applied at the RTO at the point of registration, and the dealer was expected to have reflected it in the on-road price. If you registered a vehicle on or before 26 March 2026 and were still charged full road tax, that is worth raising with your dealer and your RTO.

For the central PM E-DRIVE incentive on three-wheelers, the process is automatic at the dealer through an Aadhaar-linked e-Voucher. You do not file anything.

For the charging station capital subsidy, the route is through the state nodal agency rather than the transport department — the Urban Administration and Development Department has been the department speaking on EV policy implementation.