Electric Vehicle subsidy in India is raised to Rs 15,000 from earlier Rs 10,000.
The initial cost of owning an electric vehicle and the lack of proper charging infrastructure remains a major barrier to EV adoption in the country. Slow penetration is due to the lack of awareness about the EV ecosystem and merely 2600 EV charging stations across the country.
But the scenario is changing with the supportive Central Government schemes like FAME I, FAME II, and individual state government policies which are making EVs more affordable in India. As of today, more than 14 states have already launched their State EV policies, among which Maharashtra, Delhi, and Gujarat provide the highest purchase incentives.
Incentives are state-specific and depend on the state you are in, so which state provides the highest subsidy on EVs and which provides the lowest? Let’s have a look
Recent changes in EV policies: HIGHLIGHTS
The first phase of the FAME II electric vehicle policy was launched in 2019, which contributed heavily towards the transition of mobility patterns in India.
Recently, the government has extended the FAME II scheme till 31st march, 2024 considering the enormous growth in the EV sector post-launch of the scheme. In short to encourage faster adoption of electric and hybrid vehicles.
- The subsidy on electric vehicles in India was 20%, which has been now increased to 40%.
- 78,045 vehicles have been subsidized under the FAME scheme. Meanwhile, the incentives on EVs in India have been increased from 10,000 per kWh to 15,000 kWh.
- The FAME II has been extended till 31st March 2024 because of the impact it made on transition to e-mobility.
Let’s have a closer look at the electric vehicle policies for two-wheelers and three-wheelers from the state and central government, and how they have made an impact on the buying and selling of electric vehicles.
FAME II EV Scheme and Electric Vehicle Subsidy in India.
The FAME II scheme was launched by the union government in March 2019. This scheme was launched with aim of demand creation by providing heavy incentives on the purchase of EVs and the development of better-charging infrastructure. In addition to that, it emphasizes the 100% conversion of public transport to electric.
Under the scheme about 2700 charging stations are supposed to be installed across the country in the first phase with an availability of at least one charging station in every 3 km of distance.
Under the FAME scheme, the government aims to support 10 lakhs two-wheeler EVs, 5 lakhs three-wheelers, 55000 electric cars, and 7000 buses. The benefits of incentives will only be extended to those vehicles which are fitted with advanced batteries like a Lithium-ion battery.
Initially, under the FAME electric vehicle policy, a fund of 895 crores was allocated but now the government has allocated a much larger outlay of INR 10,000 crores to fulfill demand incentives and the development of charging infrastructure.
To conclude, If FAME II meets the expected goals, could create an EV sales penetration of 30% of private cars, 70% of commercial cars,40% of buses, and 80% of 2 and 3 wheelers by 2030.
Subsidies for electric two-wheelers in India : EV subsidies India
Because of the incentives on electric scooters, many two-wheeler EV companies have already slashed their on-road prices of electric scooters which fall under the price range of 1 Lakhs – 1.5 lakhs. A typical electric scooter with 2kW of battery capacity is expected to receive an incentive amount of INR 30,000 if it falls under the eligible category.
However, subsidies and incentives on the purchase of EVs differ state-to-state according to their respective Electric vehicle policies. Have a look:
|State||Subsidy per kW battery||Maximum Subsidy|
|Delhi||Rs 5,000||Rs 30,000|
|Gujarat||Rs 10,000||Rs 20,000|
|Maharastra||Rs 5,000||Rs 25,000|
|Assam||Rs 10,000||Rs 20,000|
|Bihar||Rs 10,000||Rs 20,000|
|West Bengal||Rs 10,000||Rs 20,000|
|Meghalaya||Rs 10,000||Rs 20,000|
|Rajasthan||Rs 2,500||Rs 10,000|
|Odisha||No Subsidy||Rs 5,000|
|Tamil Nadu||No Subsidy||NA|
|Andhra Pradesh||No Subsidy||NA|
In regards to the state-wise subsidies, Delhi currently tops the list by providing the highest subsidy of a maximum of Rs 30,000 (5,000/kW) and followed by Maharashtra, which offers a subsidy of Rs 5,000/kW too but it is limited to a maximum of Rs 10,000.
The Department of Heavy Industries recently raised the financial incentive on the purchase of electric two-wheelers from Rs 10,000/kWh to Rs 15,000/kWh, subjected to a limit of 40 percent of the vehicle cost. The earlier incentive limit of 20% of the price of electric two-wheelers is now doubled to 40% on the purchase of the vehicle.
- Drafted “Bihar EV policy” is yet to be approved, which aims to offer INR 10,000/kW subsidy on the purchase of electric two-wheelers.
- Four Indian states viz. Assam, West Bengal, Gujarat,and Meghalaya have adopted almost similar subsidy policy of Rs 10,000 per kW for electric two-wheelers, which is limited to a maximum of Rs 20,000 per vehicle.
- Many Indian states like Karnataka, Madhya Pradesh, Telangana, Tamil Nadu, Uttrakhand, Punjab, Uttar Pradesh, and Andhra Pradesh as of now have no subsidy policy for two-wheelers, but instead they provide an exemption from road tax and vehicle registration fees.
Subsidies for Electric Cars in India: EV subsidy in India
The initial cost of buying an electric car still remains a major barrier for EV adoption in India, considering the average cost of ICE cars. Recently, with the supportive government policies and electric vehicle subsidy schemes for EV manufacturers and the end consumers, the switch to e-mobility is much more affordable.
As of now most states with the approved EV policies offer incentives of Rs 10,000 per kW up to a maximum of Rs 1,50,000 on electric cars.
Currently, under the FAME II electric vehicle scheme in India, incentives are offered for the midrange electric car variants like Tata Nexon, Mahindra e-verito. The rest of the vehicles are exempted from road tax and registration fees as per Central Motor vehicle rules.
Here is the updated list of Indian states offering subsidies on Electric cars in India:
|State||Subsidy per kW battery||Maximum Subsidy|
|Delhi||Rs 10,000||Rs 1,50,000|
|Gujarat||Rs 10,000||Rs 1,50,000|
|Maharastra||Rs 5,000||Rs 2,50,000|
|Assam||Rs 10,000||Rs 1,50,000|
|Bihar||Rs 10,000||Rs 1,50,000|
|West Bengal||Rs 10,000||Rs 1,50,000|
|Meghalaya||Rs 4,000||Rs 60,000|
|Rajasthan||Rs 2,500||Rs 10,000|
|Tamil Nadu||No Subsidy||NA|
|Andhra Pradesh||No Subsidy||NA|
Highlights on electric car subsidies in India:
- Highest incentive amount of Rs 10,000 is offred currently Assam ,Gujarat and West Bengal upto 1.5 Lakhs.
- Ministry of Road Transport and Highways (MoRTH) announced the exemption of registration fees for all kinds of electric vehicles in India.
- The states with lesser or no subsidy on the purchase of Electric cars, have decided to wave of the road tax. Road tax of 50% is fixed for EV owner from Gujarat and kerala, whereas 75% is to be paid in Uttar Pradesh.
READ MORE: Three-fold increase in EV sales in India: REPORThttps://ecogears.in/electric-vehicle-sales-in-india-grew-by-three-fold-during-fy2022/
Electric vehicle subsidy for three-wheelers in India
The government of India has decided to provide incentives to the electric 3 wheelers under the FAME II scheme.
The electric 3 wheelers are also subsidized by both state EV policies and central policies. More than 1015 e-rickshaw sales were given subsidies of Rs 5000/kWh, which is the highest among the three-wheeler category.
In Delhi, e-rickshaw buyers during the initial phase got up to Rs 30,000 as incentives on the purchase of electric-rickshaws result of which can be seen in the recent application of 3,037 electric autos from Delhi.
India is to turn a significant part of 6 million three-wheelers into electric vehicles 30 % of vehicles on the road will be electrified by 2030.
State-wise electric vehicle subsidy in India.
Each state provides its own EV subsidy according to its state-wise EV policy, with an aim to lower the initial cost of owning an EV.
Let’s look at the state-wise Government EV policies and the subsidies they offer:
Electric vehicle subsidies in Delhi.
The Delhi electric vehicle policy 2020 focuses on faster adoption of Electric vehicles and also on developing an environment-friendly EV ecosystem.
The policy also focuses on the deployment of charging infrastructure across the state. Currently, with around 115 Evchaging stations, Delhi is the best place in India to drive around with an EV.
As per the policy, 25% of the vehicles in Delhi will be electrified by 2024.
Electric vehicle subsidy for two-wheelers in Delhi: Delhi currently offers a subsidy of Rs 5,000 per kWh of battery capacity up to a maximum of Rs 30,000 on the purchase of electric two-wheelers. Along with subsidy vehicle registration and road, taxes are waived off.
3 wheeler electric vehicle subsidy in Delhi: According to the electric vehicle policy of Delhi, the subsidy provided for three-wheelers is Rs 10,000 per kWh of battery capacity up to Rs 1.5 lakhs.
4-wheeler/ electric car subsidy in Delhi: The subsidy on electric four-wheeler/electric cars in Delhi is Rs 10,000 per kWh of battery capacity up to Rs 1.5 lakh. Also, there will be no road tax or vehicle registration fees for EV buyers in Delhi.
As of now, Delhi provides the highest electric vehicle subsidy in India.
Electric vehicle subsidy in Gujarat:
Though less in subsidy value, but Gujarat provides a subsidy to the highest number of vehicles – 1.21 lakh electric two-wheelers and 20,000 electric cars.
2 wheeler electric vehicle subsidy in Gujarat: The subsidy provided on the purchase of electric two-wheelers in Gujarat is Rs 10,000 per kWh of battery capacity, up to Rs 30,000. As of now, there are no registration fees or road tax for EV buyers.
3 wheeler electric vehicle subsidy in Gujarat: The subsidy offered by the government of Gujarat on the purchase of electric 3-wheelers is Rs 10,000 per kWh of battery capacity, up to Rs 50,000.
4 wheelers/electric car subsidy in Gujarat: The subsidy offered by the government of Gujarat for the purchase of an electric car is Rs 10,000 per kWh of battery capacity, up to Rs 1.5 Lakhs.
Also, there are no registration fees and road tax for EV buyers.
Electric vehicle subsidy in Maharashtra:
Maharashtra government provides incentives to automobile companies to give a 5-year battery warranty to customers.
2 wheeler electric vehicle subsidy in Maharashtra: According to the electric vehicle policy of Maharashtra, the subsidy provided on electric two-wheelers is Rs 5,000 per kWh of battery capacity, up to Rs 10,000.
Along with the subsidy on the cost of purchase, the Maharashtra state government has exempted EV buyers from road tax and vehicle registration for two-wheelers.
3 wheeler electric vehicle subsidy in Maharashtra: Subsidy of Rs 5,000 per kWh of battery capacity, up to Rs 30,000 is provided on the purchase of electric three-wheeler/ e-rickshaws in Maharastra.
Also, there are no registration fees and road tax for the electric three-wheeler buyers of Maharashtra.
Electric four-wheelers/electric car subsidy in Maharashtra: As per the electric vehicle policy of Maharashtra, a subsidy of Rs 5,000 per kWh of battery capacity, up to Rs1.5 lakh will be provided on the purchase of electric cars.
Along With the subsidy EV, buyers are exempted from paying road tax and vehicle registration fees.
Electric vehicle subsidy in Karnataka.
As of now, there is no state-provided subsidy on the purchase of electric vehicles in Karnataka. Although, Karnataka has waived off 100% road tax, vehicle registration fees, and huge incentives to the EV component manufacturers and investors in the EV sector.
The state has also devised certain concessions and incentives for battery manufacturers and charging station providers. The government of Karnataka has also decided to switch 50% of the government vehicles to electric vehicles in 2-3 years.
If a person lives in Karnataka, then he/she is eligible to apply for the subsidy which is provided by the FAME scheme.
Electric vehicle subsidy in Telangana.
Telangana govt has launched its electronic vehicle policy in the year 2020 with no direct subsidies on the purchase of electric cars and two-wheelers.
The Telangana government offers 100% exemption from road tax and vehicular registration for EV buyers.
The state also offers capital investment subsidies on electric vehicles up to 30 crores. Electric vehicle subsidy in Telangana also includes power tariff subsidy up to 5 crores.
Electric vehicle subsidy in Kerala.
Though not a direct subsidy on the purchase of electric cars, the Kerala government offers a 50% road tax exemption(for the first 5 years) for EV buyers.
Recently, In the Kerala State government budget 2021, a subsidy of Rs.25,000 to Rs.30,000 is allotted to 10,000 electric auto-rickshaws.
Electric vehicle subsidy in Tamil Nadu.
Tamil Nadu’s electric vehicle policy offers a 100% road tax exemption for EV buyers. As of now, nothing is said about direct subsidy on purchase considering the Post-Covid scenario.
Tamil Nadu govt is about to invest 50,000 crores in the EV sector and will create 1.5 lakh new jobs in the state.
If a person is a resident of Tamil Nadu, then he/she is eligible to apply for the electronic vehicle subsidy which is provided by the FAME scheme.
Electric vehicle subsidy in Assam.
Assam government has launched its EV policy in the year 2021. In the next 5 years, the government is aiming to introduce 20,000 EV’s in the state along with the provision of a high kW subsidy on the purchase of electric vehicles.
Assam government provides a subsidy of Rs.20,000 on electric scooters and other two-wheelers.
The state declared a subsidy of Rs.50,000 on the purchase of electric three-wheelers.
The government of Assam has decided on a subsidy of Rs 10,000 per kWh battery capacity up to Rs 1.5 lakhs on the purchase of electric cars and other private electric four-wheelers.
Along with the direct subsidy the state also offers 100% exemption from road taxes, registration charges, and parking fees.
Also 90% exemption on electricity duty (for the first 5 years.) for EV charging stations in the state.
Electric vehicle subsidy in West Bengal.
The (WBREDA) West Bengal Renewable Energy Development Authority is providing a subsidy of Rs.5000 on the purchase of electric scooters and bikes(for the first 200 buyers).
Road tax is waived off for all upcoming electric vehicles in the state, along with that West Bengal state government has decided that all the newly registered EVs will be exempted from the vehicle registration fees.
Funds allotted for incentivizing the deployment of charging station infrastructure across the state.
Electric vehicle subsidy in Andhra Pradesh.
Andhra Pradesh Government in its recent EV policy has waived off-road tax and vehicle registration fees for EV buyers. No direct subsidy for EV purchase is provided yet.
But just like its neighboring states, Andhra Pradesh offers incentives for EV manufacturers and charging station providers in the state.
The state has decided to provide electric two-wheelers to the state government employees on easy EMI. The maintenance of the Electronic vehicle will be free for three years.
In addition to that, the EV price will be repaid by the government within 24 to 60 months. This subsidy on electric vehicles focuses on the state government employee who comes from rural and village areas and prime concern is given to the lowest-paid employees.
Electric vehicle subsidy in Rajasthan.
A subsidy of Rs 5,000 for electric scooters with a 2kWh battery capacity up to Rs 20,000 is provided on the purchase of electric two-wheelers in Rajasthan.
On all the registration for electric two-wheelers and three-wheelers, the subsidy is valid from 1 April 2021 to March 31, 2022.
The state offers a subsidy of Rs.5000 for two-wheelers with 2kW of battery and Rs.10,000 – Rs.20,000 for electric three-wheelers and e-rickshaw(subsidy varies from as per kWh) in Rajasthan.
Electric vehicle subsidy in Bihar.
Subsidy on two-wheelers: Bihar government provides a subsidy of Rs 10,000/kWh up to a maximum of Rs 20,000 on the purchase of electric two-wheelers.
Subsidy on three-wheelers: For conversion to e-rickshaw, the Government is providing a subsidy of Rs.10,000 per kW battery capacity.
Bihar electric vehicle subsidy on electric cars/4W: In the recently updated electric vehicle policy, Bihar offers a subsidy of Rs 10,000 per kWh battery capacity up to Rs 1.5 Lakhs on purchase of electric cars. Along with the direct subsidies, the government has provided a 100% exemption on road tax and registration fees for EV buyers in Bihar.
State-wise electric vehicles (EV) Sales/Registration in India
Out of the total EV sales during FY2020 – FY2022, Uttar Pradesh tops the list with 24% of the total EV sales registered in India, followed by Bihar and Karnataka with 8% and 7% respectively. The impact of incentives provided by the state EV policies could be seen with the rise in the sales of electric vehicles in India.
India’s push towards the electrification of electric buses has led to the sale of more than 6000 electric buses as of January 2022. Delhi alone has a fleet of 2500 electric buses now.
Here is the number of Electric Vehicle sales in India:
|Vehicle Type||Number of Sales|
Apply for electric vehicle subsidy online.
The government of India has extended the FAME scheme by two years to March 31st, 2024. Fame scheme was launched to promote EVs and for the development and faster adoption of EVs in India.
“The FAME II scheme focuses on electrification of 5 lakh 3W, 7090 buses, 55000 4W, and 10 lakh 2 wheelers,” said Heavy Industries and Public Enterprises Minister, Prakash Javadekar.
This scheme was launched to address the issue of environmental pollution and to create an eco-friendly public transportation system. Also to establish charging stations for electric vehicles.
Here, we will discuss:
- Apply electric car subsidy online in India.
- Electric vehicle subsidies and incentives apply online.
- Electric scooter subsidy apply online process.
Electric Vehicle Subsidy Application process
To apply for the scheme the one should go through the application procedure of the FAME II India Scheme 2021. The subsidy scheme differs state-to-state, also the application procedure to avail it. One can also check the following from the official website of the respective state transport department.
As of now, not many states have launched their webpage for online applications of electric vehicle subsidies in India.
But generally, for most of the FAME-approved vehicles, the subsidies are not deducted during the purchase. The later can be availed in around 30 days after registering the vehicle with the provided user ID and Password during purchase.
|Scheme||Electric vehicle subsidy scheme India|
|Issuing Board||National Automotive Board (NAB)|
|Application||Electric Vehicle subsidies apply online|
|Eligible Vehicles||Electric cars & Electric scooters|
|Official website||Ministry of Heavy Industries GOI|
|Updates||Electric vehicle subsidies apply online in India|
Documents required to apply electric vehicle subsidy online.
- Any government identity card. (Like PAN card, Aadhar card, Voter ID.)
- Resident certificate.( Electricity Bill)
- EV card documents.( Provided during the purchase)
Eligibility criteria for electric vehicle subsidy in India.
As announced by the Ministry of Heavy Industry and Public enterprise the eligibility criteria depend upon different parameters like range per charge, minimum top speed, energy consumption efficiency, and acceleration consumption efficiency.
To get the subsidy under the FAME II scheme following are the eligibility criteria:
- E-bikes needs to have range of at least 80 km on a single charge and must have a maximum speed of 40 km/hr with a battery capacity of 3kWh.
- The electric scooters with maximum of 45 km/hr and which are highly powered by more than 250-watt electric motors and 3kWh of battery are eligible for the FAME II subsidy scheme.
- Electric three-wheelers with maximum speed of 50km/hr, Minimum range of 80kms and a maximum battery capacity of 5kWh are eligible to apply for electric vehicle subsidy in India.
- Electric cars / electric four-wheelers with a maximum speed of 70km/hr, minimum range of 140kms and a maximum battery capacity of 30kWh are eligible to apply for electric vehicle subsidy for electric cars in India.
To conclude, the benefit of subsidy under the FAME II scheme is only given to high-speed electric scooters and electric cars. Recently launched Ola electric scooter meets the eligibility criteria for electric 2W. Tata Nexon, Tata tigor, and some Mahindra electric cars are eligible for an online EV subsidy application.
How to apply for electric vehicle subsidy online In India?
Each state has its own EV subsidy registration process, which follows some general steps to avail.
Here are some steps to apply electric vehicle subsidy online in India.
- Collect the EV card documents, User ID and password provided during the purchase.
- Open the official website of Department of Heavy Industries, India.
- Hover over and select the new registration option.
- Enter the provided User ID and Password to login.
- Choose the vehicle type and battery capacity.
- Enter rest of details and click submit.
- Repeat the process in the state government EV portal.
The central government offers subsidies under the FAME II scheme to make EVs more affordable in India. To get the subsidy one can visit the official website of the FAME scheme and apply for it.
Fame scheme works by incentivizing the purchase cost of EVs and creating demand. FAME scheme is extended till March 2024. The scheme has increased the subsidy by 50% to Rs 15,000/kWh.The scheme aims to supports 7000 e-buses,5,00,000 e-3W,55,000 e-passenger electric vehicles vehicles.
As of now, there is no direct subsidy for the purchase of electric vehicles in Tamil Nadu. Although The state government has waived registration fees and road tax for EV buyers in Tamil Nadu.
The government of Karnataka will provide an incentive to the first 10,0000 manufactured electric vehicle. Though there is no direct subsidy on purchase of Electric Vehicles in Karnataka, the sate has decided to waive off vehicle registration fees and road tax.
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