The state of Maharashtra has unveiled the second iteration of its electric vehicle (EV) policy for 2025, following Karnataka’s lead. It includes a substantial outlay of ₹1,993 crores over 5 years – more than double the ₹930 crores allocated under its 2021 policy. India’s second largest EV market in 2024, Maharashtra’s revamped policy is comprehensive, encompassing purchase subsidies across all vehicle segments, including agricultural tractors and combined harvesters; vehicle registration and renewal fee waivers, including toll exemptions on key roadways; support for charging infrastructure development; and local manufacturing incentives. The plan’s target is clear: for 30% of all new vehicle registrations to be electric by 2030.

Yet despite its financial heft and expansive coverage, the new plan omits an element that would strengthen Maharashtra’s potential to lead India’s sustainable mobility transition: low-emission zones (LEZs) to regulate the operation of internal combustion engine vehicles.

Low-emission zones regulate the movement of high-emitting vehicles within designated areas and promote the shift to low- and zero-emission vehicles to curb emissions from on-road transport. The inclusion of an LEZ in Maharashtra’s 2021 EV policy was forward-looking and innovative, distinguishing the state’s approach and positioning Maharashtra as a leader in clean mobility.

However, in omitting LEZs, the 2025 policy misses an opportunity to reinforce the state’s commitment to sustainable urban mobility and improved public health.

This may prove costly, especially for public health, given Maharashtra’s air quality crisis. The National Clean Air Programme (NCAP) identifies 19 cities in Maharashtra as “non-attainment” cities – cities that have consistently failed to meet National Ambient Air Quality Standards (NAAQS) for 5 years. Source apportionment studies identify transportation as a major contributor to deteriorating air quality in these cities.

Nudging behaviour and transport choice

Earlier this year, the Maharashtra cabinet declared a 15% tax concession on new vehicles for vehicle owners who voluntarily scrap their old vehicles. Yet, a fundamental question persists: Why would someone voluntarily scrap or replace an old-but-compliant vehicle and shift to a cleaner alternative? Current policies focus on measures like incentives and subsidies to encourage shifts in consumer behaviour. Yet these alone can prove insufficient to overcome the convenience and sunk costs associated with existing vehicle ownership. Regulatory mechanisms like LEZs nudge consumers toward cleaner transportation choices, increase demand for cleaner vehicles, and strengthen the case for clean public transport alternatives.

Proven impact, untapped potential

Maharashtra’s 2021 EV policy tasked six cities with establishing LEZs, but without robust guidance on planning and implementation. Three cities, Pimpri-Chinchwad, Chhatrapati Sambhajinagar, and Pune, nonetheless began planning LEZs with support from the Institute for Transportation and Development Policy and the International Council on Clean Transportation (ICCT).

An ICCT analysis of Pimpri-Chinchwad estimated that a well-enforced LEZ with progressively stricter provisions could reduce nitrogen oxides pollution by 67% and particulate matter (PM_2.5) pollution by 79% by 2030 compared with 2023 levels. Similarly, an LEZ encompassing just 16% of central Chhatrapati Sambhajinagar could reduce pollution-related costs (related to public health, crop productivity, and environmental and infrastructure degradation) by up to ₹233 crores over 5 years.

Together, these two cities alone could cut PM_2.5 emissions by up to 450 tonnes cumulatively by 2030, 40% above the intended emission reduction estimated under the 2025 EV policy. We also performed additional analysis that estimated that if Pune scales an LEZ across about 38% of its area, could abate up to 570 tonnes of emissions. LEZs are not just impactful, but scalable. Densely populated cities like Mumbai and Pune, which generate transport emissions approximately 5 and 3 times higher than Pimpri-Chinchwad, respectively, would likely see greater benefits if LEZs are implemented effectively with optimal coverage and enforcement.

Local governments leading the charge

While there is little state- or national-level dialogue on LEZs in India, local governments have stepped up. Pimpri-Chinchwad has rolled out a priced-LEZ strategy that imposes charges on certain vehicles operating in the city during high-pollution periods. Chhatrapati Sambhajinagar has embedded LEZs in its city climate action plan as a crucial air quality measure.

These initiatives reveal an appetite for experimentation and innovation at the city level. State-level regulatory backing, financing, and technical support would help those innovations mature and scale.

The critical role of states

Global experiences demonstrate that LEZs require more than just vehicle restriction to succeed. They depend on a well-coordinated regulatory framework, targeted infrastructure investments, and public engagement. Clear legal mandates, standardised operations, compliance and enforcement frameworks, stakeholder consensus building, funding for vehicle transitions, and complementary programs such as scrapping schemes, EV car-sharing, and investment in public and non-motorised transport all need to be part of the mix. State governments are uniquely positioned to effectively orchestrate this ecosystem.

The recent ban on fuel sales to overaged vehicles in Delhi is a strong example of how state backing can enable effective implementation at the local level. While the ban was briefly paused due to technology readiness and cross-border refuelling challenges, it will resume with enhanced enforcement covering Delhi and five neighbouring National Capital Region (NCR) districts, followed by the entire NCR, by April 2026. While drawing a valuable lesson from Delhi’s approach, Maharashtra has the opportunity to support the progress and planning investments its cities have already made by addressing the omission of LEZs from its 2025 EV policy.

As the state sets ambitious electrification targets to slash pollution and reduce fossil fuel dependency, incorporating additional regulatory approaches like LEZs alongside demand incentives would help to create a more comprehensive and effective clean transportation strategy.

Maharashtra’s financial commitment to EV adoption is commendable, and that investment could be better secured by including the full spectrum of policy tools in its new EV plan. The question isn’t whether Maharashtra can afford to implement LEZs; given their demonstrated health, environmental, and economic benefits, the question is whether the state can afford not to implement them. Recommitting to LEZs would be a sound policy choice that would support a cleaner environment for millions breathing polluted air across the state.