Maharashtra Budget 2025: Tesla’s Entry Faces Higher Taxes on Luxury Electric Vehicles
American electric car manufacturer Tesla is preparing to enter the Indian market, and the company has already finalized a property for its first showroom in Mumbai. However, before Tesla’s official entry into India, the Maharashtra government has made an announcement that could make buying a luxury electric car in the state more expensive. Maharashtra Deputy Chief Minister Ajit Pawar presented the state budget for 2025-26 and, during this time, announced an increase in taxes on electric vehicles.
Luxury Cars Will Be More Expensive:
To boost the state’s revenue, the Maharashtra government has proposed a 6% tax on electric vehicles worth more than Rs 30 lakh in its budget for the financial year 2025-26. The proposal, presented by Deputy Chief Minister Ajit Pawar, is expected to raise additional funds and bring luxury electric cars under the tax net.
Along with increasing the tax on electric vehicles, the state government has also announced a 1% increase in the motor vehicle tax for four-wheelers powered by private CNG and LPG. This tax amendment is estimated to generate an additional Rs 150 crore for the state treasury in the upcoming financial year.
The budget also includes a 7% tax on vehicles used in construction, which is expected to contribute around Rs 180 crore in revenue. Similarly, light freight vehicles (LGVs) with a capacity of up to 7,500 kg will now be taxed at 7%, generating an estimated Rs 625 crore.
To further expand its tax base, the Maharashtra government has raised the maximum limit for motor vehicle tax from Rs 20 lakh to Rs 30 lakh, aiming to generate an additional Rs 170 crore. This new tax policy is expected to impact buyers of premium electric vehicles, commercial transport operators, and the construction sector.
Tesla’s Entry in Mumbai:
This announcement regarding the luxury electric vehicle tax comes at a time when Tesla, one of the world’s largest EV manufacturers, is preparing to enter the Indian market. Recent media reports suggest that Tesla may arrive in India by early April this year. The company has already secured a property for its first showroom in BKC, Mumbai.
Initially, Tesla is expected to import electric cars from its plant in Berlin. Tesla, led by the world’s richest man, Elon Musk, has also posted job openings for various positions in Mumbai and Pune, as noted on the company’s official website. In addition to Mumbai, Tesla is also planning to open a second showroom in Aerocity, Delhi.
