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Slowly but steadily, rising fuel prices are driving individuals towards electric vehicles. While it appears to be working for most purchasers, owning an electric vehicle is still considered to be an expensive investment by few individuals. Thankfully, states have recognised the importance of EVs, and have provided subsidies on electric vehicles (scooters & cars) to those who purchase an electric vehicle in various sections of the country.
So, in this article, we’ll look at the incentives that central and state governments are providing to purchasers who transition to electric vehicles.
The Central Government of India provides subsidies on electric vehicles (Scooters and Cars).
Let’s take a quick look at the central incentives before we go into state subsidies for electric vehicles. FAME-II, or Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, is a program run by the central government.
- On electric scooters and bikes, a direct incentive of Rs 15,000 per kWh of battery capacity (maximum 40% of vehicle cost) is available.
- On four-wheelers or electric cars, a direct incentive of Rs 10,000 per kWh of battery capacity (maximum Rs 1.5 lakh) and up to Rs 13,000 per e4W (plug-in hybrid, strong hybrid) capped at 20% of vehicle cost.
In addition, the Ministry of Finance has plans that offer a lower GST rate of 5% on all EVs and tax savings of up to Rs 1.5 Lakhs for first-time buyers. These EV subsidies/incentives, however, are in addition to state incentives and are valid throughout India. They only apply to the first 10 lakhs electric two-wheelers and 55,000 electric four-wheelers, respectively, priced under Rs 1.5 lakhs and Rs 15 lakhs.
Subsidies for electric scooters and bikes by the state in India
According to most industry sources, demand for electric two-wheelers outnumbers demand for four-wheelers. As a result, it’s clear that governments have separated their payments based on this. The advantages have been determined based on the battery capacity (measured in kWh). Here’s a breakdown of state-by-state subsidies for electric scooters and bikes:
| STATE | BATTERY CAPACITY COST | MAX SUBSIDY | OTHER BENEFITS |
| Delhi | Rs 5,000/ kWh | Rs 30,000 |
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| Maharashtra | Rs 5,000/ kWh | Rs 10,000 for the 1st 10 lakh buyers |
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| Meghalaya | Rs 10,000/ kWh | Rs 20,000 for the first 3,500 electric scooter |
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| Gujarat | Rs 10,000/ kWh | Rs 20,000 for the first 1.1 lakh electric two-wheelers |
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| Chandigarh | – | Rs 20,000 for the first 3,000 vehicles |
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| Assam | Rs 10,000/ kWh | Rs 20,000 |
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| Bihar | Rs 10,000/ kWh | Rs 20,000 |
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| Goa | Rs 10,000/ kWh | Rs 30,000 per annum for 5 years |
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| Rajasthan | Rs 2,500/ kWh | Rs 10,000 |
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| Odisha | – | Rs 5,000 |
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| West Bengal | Rs 10,000/ kWh | Rs 20,000 |
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| Uttar Pradesh | N/A | N/A |
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| Madhya Pradesh | N/A | N/A |
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| Kerala | N/A | N/A |
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| Punjab | N/A | N/A |
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| Karnataka | N/A | N/A |
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| Andhra Pradesh | N/A | N/A |
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| Tamil Nadu | N/A | N/A |
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| Uttarakhand | N/A | N/A |
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As you can see, Delhi provides the most generous EV subsidies. Maharashtra and Meghalaya are the next two states. Except for Gujarat, which includes a 50 percent road tax in the final purchase price, most regions have similarly eliminated road tax. Right now, the number of states that do not provide any subsidies is substantially higher, with Karnataka, Andhra Pradesh, Madhya Pradesh, and Tamil Nadu among them.
Subsidies for electric cars by the state in India
Various states are providing subsidies for more than simply electric scooters. Even purchasing an electric vehicle, such as the Tata Nexon EV or the Hyundai Kona Electric, entitles you to special advantages. Here’s a state-by-state breakdown of where you can obtain the best EV subsidy.
| STATE | BATTERY CAPACITY COST | MAX SUBSIDY | OTHER BENEFITS |
| Maharashtra | Rs 5,000/ kWh | Rs 1,50,000 for the first 10,000 buyers |
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| Delhi | Rs 10,000/ kWh | Rs 1,50,000 for the first 1,000 buyers |
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| Gujarat | Rs 10,000/ kWh | Rs 1,50,000 for the first 10,000 buyers |
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| Assam | Rs 10,000/ kWh for electric cars priced above Rs 15 lakh | Rs 1,50,000 for the first 25,000 buyers |
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| Bihar | Rs 10,000/ kWh | Rs 1,50,000 for the first 5,000 buyers |
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| West Bengal | Rs 10,000/ kWh | Rs 1,50,000 |
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| Meghalaya | Rs 10,000/ kWh for electric four-wheelers priced above Rs 15 lakh | Rs 60,000 for the first 2,500 buyers |
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| Goa | Rs 10,000/ kWh | Rs 1,50,000 for the first 500 electric cars |
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| Odisha | N/A | Rs 1,00,000 |
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| Chandigarh | N/A | N/A |
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| Punjab | N/A | N/A |
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| Uttarakhand | N/A | N/A |
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| Uttar Pradesh | N/A | N/A |
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| Madhya Pradesh | N/A | N/A |
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| Karnataka | N/A | N/A |
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| Rajasthan | N/A | N/A |
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| Kerala | N/A | N/A |
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| Telangana | N/A | N/A |
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| Tamil Nadu | N/A | N/A |
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| Andhra Pradesh | N/A | N/A |
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When the initiatives were first implemented, Maharashtra and Delhi were clearly in the lead. The early bird discounts appear to have already been taken advantage of. While other states continue to encourage people to purchase electric vehicles across the country.
Providing subsidies on electric vehicles is a welcome move towards faster adoption of evs, but the provision of robust charging infrastructure will factor to be the real game changer.
Also Read: How to setup EV Charging Station
EV Duniya Editorial: This article is written by Kamalpreet Kaur
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