Ashok Leyland, M&M, Olectra Greentech shares fall as Maharashtra proposes 6% tax on EVs above ₹30 lakh

Mahindra & Mahindra shares settled 1.66% lower at ₹2,657.85 apiece on the National Stock Exchange (NSE). Intraday, it fell as much as 3.3%.

Maharashtra government on Monday proposed a 6% tax on EVs priced ₹30 lakh and above. Deputy Chief Minister Ajit Pawar, who also holds the finance portfolio, announced a 1% increase in the Motor Vehicle Tax on non-transport CNG and LPG vehicles.

Furthermore, the government has decided a Motor Vehicle Tax of 7% on a lump-sum basis on the price of vehicles used for construction like cranes, projectors, compressors and excavators.

The upper limit of the Motor Vehicles Tax was raised to ₹30 lakh from ₹20 lakh earlier. Overall, these hikes are expected to add more than ₹1,100 crore to the state's revenue.

Notably, Maharashtra was second highest in terms of EV registrations between 2019 and 2024, only behind Uttar Pradesh. Around 4.39 lakh EVs were registered in the state out of a total of 36.4 lakh registrations in India.

Meanwhile, equity benchmark indices SENSEX and NIFTY closed mixed on Tuesday amid weak trends in the US markets and heavy selling in blue-chip stock Infosys.

NIFTY50 rose 0.17% to 22.497, while SENSEX settled marginally lower at 74,102, down 12.8 points.

In the NIFTY50 space, Trent, BPCL, Sun Pharma, ICICI Bank and BEL were the top gainers.

On the other hand, IndusInd Bank, Infosys, Bajaj Finserv, Mahindra & Mahindra and Power Grid were the losers.