Electric car makers urge Karnataka to reconsider new 5-10% tax

Mint and a person familiar with the matter.The companies have sought a meeting with Siddaramaiah, warning that the move could affect air pollution goals, oil imports, energy security and the investment outlook for India’s EV industry.Mint reported on 31 March that Karnataka had reversed its earlier EV road tax waiver, a step that risks slowing adoption in one of India’s key EV markets. In 2025, the state accounted for 12% of the country’s electric car sales, with more than 21,000 units sold and passenger vehicle penetration of 6.4%, compared with 4% nationally.“The objective of this engagement is to share industry perspectives on the recent revisions in Road Tax applicable to electric passenger vehicles in the Karnataka State.

While we fully appreciate the state’s fiscal considerations, we would like to submit that policy signals of this nature may have a bearing on the reduction in air pollution, crude oil import and energy security, consumer sentiment and investment outlook, particularly at a time when the EV ecosystem is at a critical growth juncture,” the correspondence said.Emailed queries to the Karnataka government, JSW MG Motor India, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, and Kia India went unanswered till press time.A bill passed last month in the Karnataka assembly imposes a 5-10% tax on EVs based on their registration price, widening the gap with cheaper internal combustion engine (ICE) vehicles. The move partly negates Karnataka’s 2025 clean mobility policy, which waived road and registration taxes for EVs priced under ₹25 lakh.ICE vehicles in Karnataka will attract a higher lifetime registration tax of 13-18% of a vehicle’s cost under the amended law.