Maharashtra hikes tax on CNG vehicles by 1%, additional 6% tax on select EVs; shares of car makers, MGL fall

Ajit Pawar

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26 Aug, 2025 12:21

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The shares of EV and CNG vehicle makers, along with related OEMs fell on March 10 as Maharashtra announced a hike in the motor tax levied on compressed natural gas (CNG) and PNG four wheelers by one percent.

This is expected to generate Rs 150 crore in additional revenue for the state in the upcoming financial year. Currently, the motor vehicle tax levied on such cars ranges between 7 to 9 percent, based on vehicle and price.

An additional 6 percent tax on electric vehicles prices above Rs 30 lakh was also announced as part of the state's annual Budget unveiled by the state Finance Minister Ajit Pawar. This is expected to generate an additional Rs 170 crore in revenue for the state in the upcoming financial year.

Notably, the budget also proposed to impose 7 percent motor vehicle tax on vehicles used for construction work and light goods carrying vehicles. This is expected to generate Rs 625 crore in additional revenue for the state in FY26.

The proposed changes are set to take effect from April 1 with the beginning of the financial year 2026.

Ajit Pawar, who is also the Deputy Chief Minister of Maharashtra, presented the first full Budget of the Mahayuti 2.0 government on March 10.

The shares of Maruti Suzuki and Mahanagar Gas (MGL) fell nearly a percent, Tata Motors shares closed with marginal losses, and Mahindra & Mahindra (M&M) shares declined over a percent at close.

Hyundai Motors shares recorded strong losses, partly due to other news flow around the company, and Bajaj Auto shares ended nearly 3 percent lower at close.

At close, Nifty Auto ended with significant losses on March 10, down nearly 1.22 percent.

Maharashtra ranked second in terms of EV registrations between 2019 and 2024, second only to Uttar Pradesh. It registered 4.39 lakh EVs during the period out of the total 36.4 lakh registrations in India, as per government data for 2024.

(With inputs from CNBC-TV18)