Introduction
Karnataka has taken a bold step toward sustainable and clean mobility with the launch of the Karnataka Clean Mobility Policy 2025-30. This policy aims to position the state as the #1 hub in Asia for clean mobility, attracting investments, fostering innovation, and accelerating the transition to electric, hydrogen, and fuel-cell vehicles.
With ₹50,000 crore in investments and a goal of creating 100,000 new jobs, this policy is set to revolutionize the state’s automotive and mobility landscape. Let’s explore the key highlights, incentives, and benefits of this futuristic initiative.
Key Objectives of the Policy
The Karnataka government envisions:
- Becoming Asia’s top clean mobility hub
- Encouraging rapid adoption of clean vehicles through incentives and infrastructure
- Developing a complete clean mobility ecosystem with R&D, skill development, and manufacturing clusters
- Fostering innovation in EVs, hydrogen fuel-cell vehicles, and advanced battery technologies
Market Landscape & Growth Potential
- Karnataka has already registered 2.5 lakh EVs, ranking third highest in India.
- ₹25,000 crore investments have already been made, with ₹15,000 crore more planned.
- 5,403 EV charging stations are operational, with 2,500 more planned under PPP mode.
- India’s EV penetration is projected to reach 25-30% for two/three-wheelers, 12-15% for four-wheelers, and 6% for buses by 2030.
Investment Breakdown
| Investment Area | Current Investment
(₹ Crore) |
Planned additional
Investment (₹ Crore) |
| Battery & Cell Manufacturing | 10,000 | 5,000 |
| EV Component Production | 5,000 | 3,000 |
| Charging & Testing Infrastructure | 5,000 | 3,000 |
| Research & Development | 5,000 | 4,000 |
Incentives & Concessions for Clean Mobility Vehicles
The Karnataka government has introduced a comprehensive set of incentives to boost the adoption of clean vehicles across different categories.
- Demand-Side Incentives (For End Consumers & Fleet Owners)
| Vehicle Segment | Road Tax & Registration Exemption | Additional Benefits |
| 2-Wheelers (E-bikes, E-scooters) | 100% exemption | Encouragement for ride-sharing & delivery companies to transition to EVs |
| 3-Wheelers (E-Rickshaws, E-Autos) | 100% exemption | Promoted for last-mile connectivity in partnership with metro & urban transport |
| 4-Wheelers (E-Cars, Taxis) | 100% exemption | Retrofitting of old petrol/diesel vehicles encouraged |
| Buses (Public & Private) | 100% exemption | Special stage carrier permit policy for clean mobility buses |
| Commercial Fleets (E-Commerce, Delivery, School & Corporate Vehicles) | 100% exemption | 100% clean mobility transition by 2030 for e-commerce, fleet & logistics |
| Private Electric Cars | Not eligible for incentives | Owners must pay standard road tax and registration fees |
- Supply-Side Incentives (For Manufacturers & Infrastructure Developers)
| Category | Incentive Type | Details |
| Manufacturing – EVs & Components | Capital Subsidy | 20-35% of Value of Fixed Assets (VFA) for MSMEs & large enterprises |
| Stamp Duty Exemption | 100% exemption for clean mobility projects | |
| Land Conversion Fee Reimbursement | 100% reimbursement for converting land for industrial use | |
| Electricity Tariff Subsidy | 100% exemption for 3-8 years based on zone | |
| Effluent Treatment Plant (ETP) Subsidy | 50-75% subsidy on ETP setup cost | |
| Charging/Swapping Infrastructure | Land on Long Lease | Govt. will allocate land for charging/hydrogen stations |
| Fast Charging Stations (2W, 3W, Cars, Buses) | 25% subsidy up to ₹10 lakh per station (500 units) | |
| Battery Swapping Stations | 25% subsidy: ₹3L (2W/3W), ₹5L (cars), ₹10L (buses) | |
| Hydrogen Stations | 25% subsidy up to ₹1 Cr per station (25 units) | |
| R&D & Skill Development | Research Incentives | 30% R&D cost reimbursement (max ₹1 Cr) |
| Industry-Academia Linkages | Specialized clean mobility courses in ITIs, polytechnics, universities | |
| Startup Support | Venture capital fund for clean mobility startups |
Special Considerations for Hybrid Vehicles
The policy prioritizes full electric and hydrogen vehicles, but hybrid vehicles may benefit from:
- Manufacturing incentives if they align with clean mobility objectives
- R&D grants for hybrid technology development
- Possible inclusion in future revisions of the policy
However, hybrids are not eligible for road tax & registration exemptions like EVs.
Infrastructure Development Initiatives
- Land on long lease for charging/swapping/hydrogen stations.
- Fast charging stations every 50 km on key highways (Bengaluru-Pune, Bengaluru-Mysuru, etc.).
- BESCOM’s “EV Mitra” App for a “One State, One App” charging network.
- Public-private partnerships (PPP) for setting up 2,500 additional charging stations.
The Karnataka Clean Mobility Policy 2025-30 provides a holistic approach to developing a world-class clean mobility ecosystem. With strong incentives, robust infrastructure plans, and a focus on R&D, the state is set to lead India’s transition to green mobility.
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