Electric vehicle buyers in Andhra Pradesh are reportedly struggling to receive purchase incentives promised under the state’s EV policy, even as sales of electric vehicles continue to rise sharply amid high fuel prices and renewed government support for clean mobility.
Under the AP Sustainable Electric Mobility Policy 4.0, EV purchasers are entitled to a purchase incentive equal to 5% of the ex-showroom price, which is meant to be passed on as a direct discount at the time of purchase, The Economic Times reported.
However, despite thousands of electric vehicles being sold after the policy guidelines were issued on December 11, 2024, official records show that fewer than 100 applications for the incentive have been approved so far.
Data indicates that Andhra Pradesh recorded over 72,000 electric two-wheeler sales in the 2025–26 financial year, along with 257 electric goods carriers and 62 electric buses. Yet, only 45 applications for purchase incentives have been sanctioned under the scheme.
The incentive structure applies to multiple vehicle categories, including two-wheelers, three-wheelers, buses, goods carriers and tractors, with eligibility thresholds based on ex-showroom prices. However, no incentive has been extended for electric four-wheelers under the current policy.
Officials said one of the key reasons for the low number of approvals is limited awareness among consumers about the application process. Buyers are required to apply through the Andhra Pradesh Industries Department website to receive the benefit.
An Industries Department official, speaking on condition of anonymity, said the process involves multiple stages of verification. Applications are first submitted online and then forwarded to the District Industries and Exports Promotion Committee (DIEPC), where they are reviewed and approved in meetings chaired by district collectors.
The official added that although 45 applications have been cleared by the committees, beneficiaries are still awaiting disbursal of funds as government approvals for payment are pending.
The gap between vehicle sales and incentive payouts has raised concerns about the implementation of the scheme, even as the state continues to promote electric mobility as part of its long-term transport and energy transition strategy.
