Kerala Cuts Road Tax on Affordable EVs, Buyers Can Save Up To ₹74,000

Kerala has announced revised road tax rates for electric vehicles as part of its updated state budget presented on June 18, 2026. The biggest relief comes for EV buyers in the ₹15 lakh to ₹20 lakh price bracket, where road tax has been reduced from 8 percent to 5 percent. This 3-percentage-point reduction can translate into savings of up to ₹74,000 on eligible electric vehicles. For an EV priced at ₹20 lakh, buyers can expect a direct saving of ₹60,000 at the time of registration.