Electric cars are becoming more popular in Telangana, with around 1 in every 8 new cars registered in the state being electric during the 2025-26 financial year.
According to an analysis by the Telangana Transport Department, electric cars made up 12.5% of all new car registrations during the year.
Around 1.50 lakh new cars were registered in Telangana, of which 18,853 were electric cars.
Electric Cars Crossed 10% Every Month
- Electric cars had a share of more than 10% of new car registrations every month during the financial year.
- Their highest monthly share was recorded in August, when electric cars accounted for about 15.2% of new car registrations.
- Electric two wheelers had a lower share during much of the year.
Tax Waiver Helped Increase EV Sales
- The Telangana government’s decision to remove the limit on its EV tax exemption is being credited as one of the major reasons for the growth.
- The policy was introduced on November 16, 2024.
- Under the policy, eligible electric vehicles registered in Telangana receive a full waiver of road tax and registration fees.
- The benefit covers electric cars, two wheelers, auto rickshaws, commercial passenger vehicles, light goods vehicles, tractors and some buses.
- The current exemption is available until December 31, 2026.
EV Registrations Rose by Around 20%
- Following the tax exemption, average monthly EV registrations increased from around 6,333 vehicles before the exemption to 7,592 vehicles during FY 2025-26.
- Overall EV registrations increased by around 20% compared with the earlier period.
- EV registrations reached their highest monthly level in October 2025, when more than 10,700 electric vehicles were registered.
More Than 91,000 EVs Registered
- Across all vehicle categories, Telangana registered more than 91,000 electric vehicles during FY 2025-26.
- This included electric cars, two wheelers, three wheelers and commercial vehicles.
- Electric vehicles accounted for around 8.8% of all vehicle registrations in the state during the year.
- The EV sector also attracted more than ₹6,000 crore in investment, according to the analysis.
Commercial EVs Also Growing
- The growth is not limited to private car owners.
- Commercial electric vehicles such as auto rickshaws, taxis, goods vehicles and buses also saw an increase in registrations.
- Commercial EV registrations rose quickly after the tax exemption was introduced, showing growing interest in electric vehicles among business users.
Telangana’s EV Market Is Changing
- The numbers show that electric vehicles are becoming a bigger part of Telangana’s automobile market.
- Lower running costs, government tax benefits and increasing awareness about electric vehicles are helping more people consider EVs.
- However, the growth of electric vehicles will also depend on factors such as Charging infrastructure, Vehicle prices, Battery life and Availability of different models.
