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Subsidies on Electric Vehicles in India | Scooters | Cars

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Subsidies on Electric Vehicles scooters & Bikes by Indian Central & State Government
Subsidies on Electric Vehicles (Scooters & Bikes) by Indian Central & State Governments

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
  • No road tax, registration fees
  • up to Rs 10,000 scrapping incentive
Maharashtra  Rs 5,000/ kWh Rs 10,000 for the 1st 10 lakh buyers
  • No road tax, registration fees
  • up to Rs 15,000 early-bird incentive till December 31st
  • up to Rs 7,000 scrapping incentive
  • Rs 12,000 incentive with buyback scheme
  • min 5 years warranty on the battery
Meghalaya  Rs 10,000/ kWh Rs 20,000 for the first 3,500 electric scooter
  • No road tax, registration fees
Gujarat Rs 10,000/ kWh Rs 20,000 for the first 1.1 lakh electric two-wheelers
  • No road tax, registration fees
Chandigarh Rs 20,000 for the first 3,000 vehicles
  • No road tax, registration fees
Assam Rs 10,000/ kWh Rs 20,000
  • No road tax, registration fee
Bihar Rs 10,000/ kWh Rs 20,000
  • No road tax, registration fee
  • up to Rs 14,000 subsidy on Li-ion battery
Goa Rs 10,000/ kWh Rs 30,000 per annum for 5 years
  • No road tax, registration fee
  • up to Rs 10,000 scrapping incentive
Rajasthan  Rs 2,500/ kWh Rs 10,000
  • No road tax, registration fee
  • SGST reimbursement
Odisha Rs 5,000
  • No road tax, registration fee
West Bengal Rs 10,000/ kWh Rs 20,000
  • No road tax, registration fee
Uttar Pradesh N/A N/A
  • No road tax, the registration fee for the first 1 lakh electric scooters/ bikes
Madhya Pradesh N/A N/A
  • Registration fee waiver
Kerala N/A N/A
  • Registration and road tax waiver
Punjab N/A N/A
  • No road tax, registration fees
Karnataka N/A N/A
  • Registration and road tax waiver
Andhra Pradesh N/A N/A
  • No road tax, registration fee till 2024
Tamil Nadu N/A N/A
  • Registration fee waiver until 2024
  • No road tax
Uttarakhand N/A N/A
  • No road tax, the registration fee for the first 1 lakh electric scooters/ bikes

 

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
  • No road tax, registration fees
  • up to Rs 1,00,000 early bird incentive till December 31st
  • up to Rs 25,000 scrapping incentive
Delhi Rs 10,000/ kWh Rs 1,50,000 for the first 1,000 buyers
  • No road tax, registration fee
Gujarat Rs 10,000/ kWh Rs 1,50,000 for the first 10,000 buyers
  • No road tax, registration fee
Assam Rs 10,000/ kWh for electric cars priced above Rs 15 lakh Rs 1,50,000 for the first 25,000 buyers
  • No road tax, registration fees
Bihar Rs 10,000/ kWh Rs 1,50,000 for the first 5,000 buyers
  • No road tax, registration fees
West Bengal Rs 10,000/ kWh Rs 1,50,000
  • No road tax, registration fees
Meghalaya  Rs 10,000/ kWh for electric four-wheelers priced above Rs 15 lakh Rs 60,000 for the first 2,500 buyers
  • No road tax, registration fees
Goa Rs 10,000/ kWh Rs 1,50,000 for the first 500 electric cars
  • No road tax, registration fees
Odisha N/A Rs 1,00,000
  • No road tax, registration fees
Chandigarh N/A N/A
  • No road tax, registration fees till 2024
Punjab N/A N/A
  • No road tax, registration fees
Uttarakhand N/A N/A
  • No road tax, registration fees for the first 1 lakh electric vehicles
Uttar Pradesh N/A N/A
  • No road tax, registration fees for the first 1 lakh electric vehicles
Madhya Pradesh N/A N/A
  • No registration fees
Karnataka N/A N/A
  • No road tax, registration fees
Rajasthan N/A N/A
  • No road tax, registration fees
Kerala N/A N/A
  • No road tax, registration fees
Telangana N/A N/A
  • No road tax, registration fees
Tamil Nadu N/A N/A
  • No road tax, registration fees
Andhra Pradesh N/A N/A
  • No road tax, registration fees

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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