Punjab offers real, government-notified incentives for EV buyers — but the details are spread across more than one notification, and at least one of them has a firm expiry date that's worth knowing before you assume it still applies.
Road tax and registration fee exemption
Under notification No. 10/43/2018-2T2, issued by Punjab's Department of Transport on 10 April 2023, all registered electric vehicles (and battery-operated vehicles) in Punjab are exempt from motor vehicle tax for 3 years from the issuance of the Punjab Electric Vehicle Policy 2022 (21 February 2023) — meaning the notification's own text puts the exemption window at roughly 21 February 2023 to 21 February 2026.
This matters right now: that window has passed as of this writing. Punjab's 2026 Electric Vehicle Manufacturing Policy (a separate, investment-focused document — see below) re-cites the same 2023 notification without stating a new end date. Whether the exemption has been formally extended isn't confirmed by any source checked for this article. If you're budgeting a purchase around road tax being waived, verify current status with your local Regional Transport Office before relying on it.
Separately, EVs are also exempt from vehicle registration fees, with no stated expiry tied to this specific benefit.
Purchase incentives by vehicle type
Beyond the tax exemptions, Punjab's EV Policy set out per-kWh purchase incentives, layered on top of any central government scheme:
| Category | Incentive | Cap per vehicle | Eligible buyers | |---|---|---|---| | Electric two-wheelers | ₹3,000 per kWh of battery capacity | ₹10,000 | First 1,00,000 registered owners | | E-cycles (≤25 km/h, ≤60 kg) | ₹3,000 per kWh | — | First 20,000 owners | | Electric three-wheelers (autos) | ₹3,000 per kWh | ₹30,000 | First 5,000 owners | | E-rickshaws | ₹3,000 per kWh | ₹15,000 | First 10,000 owners |
These incentives apply only to vehicles using advanced (lithium-ion) battery chemistry recognized under the central government's FAME phase-II guidelines, including swappable-battery models.
Punjab's separate Manufacturing Policy
It's worth not confusing two different documents. The incentives above come from Punjab's consumer-facing EV Policy. In 2026, the state's Department of Industries and Commerce also published the Punjab Electric Vehicle Manufacturing Policy 2026 — this is aimed at companies setting up EV, battery, or component manufacturing in Punjab (capital subsidies, SGST reimbursement, electricity duty exemptions), not at individual buyers. It does include one buyer-relevant detail: EV charging stations get power from PSPCL at a variable tariff of ₹5 per kVAh.
What this means if you're buying
- Don't assume the road tax exemption is automatically live — ask your dealer and your RTO for the current, written position before you finalize a purchase.
- The per-kWh purchase incentive is separate from, and stacks with, any central FAME-II benefit your vehicle already qualifies for.
- Check our EV Policy hub for the underlying policy record and source links, and our charging station directory for where Punjab's EV charging infrastructure actually stands today.
Sources: Punjab Transport Department notification 10/43/2018-2T2, dated 10 April 2023; EVreporter's summary of the Punjab State EV Policy; Punjab Electric Vehicle Manufacturing Policy 2026, Department of Industries and Commerce.