5 EV stocks to be affected as Maharashtra govt announces motor tax hike

In India, electric vehicles (EVs) sales saw a decline in February 2025, with 8,968 units sold, while the overall EV market aims for 2 million units in FY2025. Meanwhile, CNG vehicles continue to be a popular alternative fuel option. EV sales need a boost to meet ambitious targets amidst growing competition and infrastructure challenges. 

The shares of EV and CNG vehicle manufacturers are likely to take a hit as the Maharashtra Government announced a hike in the motor tax imposed on compressed natural gas and PNG four-wheeler by 1 percent. This is anticipated to generate Rs 150 crore in additional revenue for Maharashtra in the upcoming financial year. As of now, the motor vehicle tax levied on such cars ranges between 7 to 9 percent, based on the vehicle and price. 

Additional 6 percent tax on EVs priced above Rs 30 lakh was also announced in the annual budget of Maharashtra by Finance Minister Ajit Pawar, expected to generate Rs 170 crore in FY26. Additionally, a 7 percent motor vehicle tax on construction and light goods vehicles is projected to add Rs 625 crore in revenue for the state. 

Moreover, the proposed changes are set to take effect from April 1 with the beginning of the financial year 2026. Furthermore, the decline in auto sales due to slowing economic growth, reduced consumer sentiment, Inventory buildup, and cautious lending by banks are already impacting overall automobile demand, and this new tax policy is likely to affect the operations of the automakers, leading to a further fall in demand. 

Here are the stocks in focus after the Maharashtra Government announced a hike in the motor tax:

1. Maruti Suzuki India Ltd 

With a market capitalization of Rs 3.64 lakh crore, the shares were trading at Rs 11,621.00 per share, increasing around 0.46 percent as compared to the previous closing price. 

Also read: Kanpur Plastipack in focus after it plans to sell CPP division assets worth over ₹49 Cr

2. Tata Motors Ltd 

With a market capitalization of Rs 2.37 lakh crore, the shares were trading at Rs 645.50 per share, decreasing around 0.37 percent as compared to the previous closing price. 

3. Mahindra And Mahindra Ltd 

With a market capitalization of Rs 3.30 lakh crore, the shares were trading at Rs 2,656.00 per share, decreasing around 2 percent as compared to the previous closing price. 

4. Hyundai Motor India Ltd

With a market capitalization of Rs 1.34 lakh crore, the shares were trading at Rs 1,659.80 per share, decreasing around 1 percent as compared to the previous closing price. 

5. Bajaj Auto Limited 

With a market capitalization of Rs 2.07 lakh crore, the shares were trading at Rs 7,419.80 per share, increasing around 0.49 percent as compared to the previous closing price. 

Written by Abhishek Singh

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