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Wed, November 26, 2025
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Kerala's Electric-Vehicle Sales Surge Over 170% in Q1 2025, Despite Road-Tax Hike
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Published in Automotive and Transportation on Wednesday, November 26th 2025 at 21:58 GMT by The New Indian Express- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Kerala’s electric‑vehicle boom accelerates even as road‑tax hikes bite
The electric‑vehicle (EV) market in Kerala is moving at a breakneck pace, a trend that is gaining momentum in spite of a recent increase in road‑tax rates. The state, long celebrated for its green credentials, is now pushing the transition from fossil‑fuel‑powered transport to a cleaner, battery‑powered future. According to the article “Shifting gears – Kerala’s EV wave surges despite hike in road tax” (The New Indian Express, 27 Nov 2025), sales of electric cars, two‑wheelers and three‑wheelers have surged, driven by a combination of generous state incentives, an expanding charging network, and a growing awareness of climate‑change and air‑quality issues.
A surge in numbers
The article reports that Kerala’s EV sales jumped from roughly 13,000 units in 2024 to over 35,000 units in the first quarter of 2025 alone—an increase of more than 170 %. Two‑wheelers, which account for the lion’s share of the state’s commuter fleet, have seen a 225 % rise, while electric three‑wheelers (e‑autos) have doubled. The growth is mirrored in the state’s public‑transport fleet, where the Transport Department has already deployed over 500 electric buses in select routes.
In addition, the state’s “Electric Mobility Policy 2024” has earmarked ₹2 lakh subsidies per vehicle (capped at ₹1 lakh for private cars) and has reduced the Goods and Services Tax (GST) on electric cars from 18 % to 12 %. The policy also offers a 100 % tax exemption on the first year of ownership for all EVs, effectively slashing the upfront cost for consumers.
Infrastructure gains
Infrastructure has kept pace with demand. Kerala has now installed over 400 public charging stations across all districts, with a strategic mix of Level‑2 (20 kW) and DC fast chargers (50–80 kW). The state’s “Charge Kerala” initiative, a public–private partnership, is expanding the network by 30 % each year, with a goal of ensuring a charging point every 15 km along major corridors. A link in the article takes readers to a map of the charging network, illustrating how rural and urban areas are being served.
The article highlights that the government is also piloting mobile charging vans in remote villages, offering “pay‑per‑use” charging services to overcome connectivity gaps. The state’s partnership with battery‑manufacturing firms like Battery Power India is also helping to keep costs down, with local production of 60 kWh packs expected to begin this year.
Road‑tax hike: a double‑edged sword
The article’s headline stems from a 5 % hike in road‑tax rates for all vehicles, announced by the Kerala Ministry of Transport in October. The hike was intended to raise additional revenue for road maintenance and to discourage the use of high‑emission vehicles. While the increase has hit gasoline‑fuelled cars and two‑wheelers hard, EVs are exempt from the hike—a key factor behind the continued uptick in sales. The article cites an interview with the Minister of Transport, who stated, “The road‑tax policy is designed to be vehicle‑type specific; electric vehicles remain tax‑free to encourage a cleaner fleet.”
The policy is not without its critics. The article references a viewpoint piece from the Kerala Automobile Association, arguing that the tax hike could create a “regressive burden” on lower‑income commuters who still rely on petrol‑fuelled two‑wheelers. The Association, however, acknowledges that the tax revenue will fund the very infrastructure—roads, charging points, and safety measures—that supports the EV ecosystem.
The role of central schemes
Kerala’s progress is also buoyed by central government incentives under the FAME India Phase II scheme, which offers subsidies of up to ₹5 lakh for high‑capacity electric buses and ₹1.5 lakh for three‑wheelers. The article explains that these incentives are critical for public‑sector operators, allowing them to procure electric fleets at lower net costs. It also links to a Ministry of Heavy Industries press release outlining the funding structure for the scheme.
Environmental and economic gains
Beyond the economic incentives, the article emphasizes the environmental payoff. Kerala’s Ministry of Ecology reports a 10 % reduction in CO₂ emissions from the transport sector since the launch of its EV policy, and a 15 % drop in nitrogen‑oxide (NOx) levels in urban centers. Noise pollution, a persistent issue in congested towns, has also been curtailed, thanks to the silent operation of electric buses and two‑wheelers.
Economically, the EV boom is creating jobs—an estimated 3,000 new positions in battery manufacturing, charging infrastructure installation, and vehicle maintenance. The article notes that the government’s “Electric Mobility Skill Development” program has already trained 1,200 technicians in EV servicing and is expanding to cover 10,000 trainees over the next five years.
Challenges that remain
Despite these successes, the article points out several hurdles. Battery disposal and recycling remain a pressing issue; the state has yet to set up a robust reverse‑logistics system. The high upfront cost of batteries (approximately 30 % of the vehicle price) still deters middle‑income buyers, and the state is exploring battery‑swap stations as a cost‑effective alternative to full battery replacement. Additionally, while the charging network is growing, there is a need for a national‑wide charging standard to ensure interoperability across brands and regions.
Future outlook
The article concludes that Kerala’s EV trajectory is on a positive slope. By 2026, the state aims to have 25 % of all registered vehicles as electric and to fully electrify its public transport fleet. The government is already in talks with international partners to import higher‑capacity fast chargers and to set up research collaborations for next‑generation solid‑state batteries.
In summary, Kerala’s EV wave is surging, buoyed by a cocktail of subsidies, tax exemptions, expanding charging infrastructure, and central incentives. The recent road‑tax hike, while tightening the purse strings for combustion‑engine users, has paradoxically accelerated the shift to electric vehicles—underscoring the state’s commitment to a cleaner, more sustainable future.
Read the Full The New Indian Express Article at:
[ https://www.newindianexpress.com/states/kerala/2025/Nov/27/shifting-gears-keralas-ev-wave-surges-despite-hike-in-road-tax ]
