An EV Subsidy refers to the financial incentives offered by the government to minimize the initial cost of electric vehicles for consumers. This subsidy is intended to make EVs more affordable and competitive as compared to traditional petrol or diesel-powered vehicles.
By lowering the upfront cost, the government hopes to drive a wider adoption of electric vehicles, contributing to a cleaner and greener future.
Key Benefits of EV Subsidy in India
Reduced Cost of Ownership
The most immediate benefit of the EV subsidy is the upfront cost reduction of purchasing an electric vehicle. The tax incentives also reduce the total cost of ownership, especially for consumers opting for vehicle loans
Environmental Impact
EV subsidies are a crucial part of India’s efforts to reduce carbon emissions and combat climate change. By making EVs more affordable, the government encourages the use of vehicles that produce zero tailpipe emissions, helping to reduce air pollution, especially in urban areas.
Energy Independence
The use of electric vehicles powered by renewable energy sources can reduce India’s dependence on imported oil and coal. This shift also supports the government's goal to promote renewable energy, as electric vehicles are increasingly charged using clean energy sources like solar and wind.
Job Creation and Economic Growth
The growth of the EV sector, fueled by subsidies and incentives, can lead to the creation of jobs in various industries, including manufacturing, infrastructure development, and research and development.
Also Read: Top Electric Cars in India (2025)
Types of EV Subsidy Programs in India
FAME India Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles)
The FAME India Scheme is one of the most well-known EV subsidy programs launched by the Government of India. It is designed to incentivize the adoption of electric vehicles and hybrids by offering direct financial incentives to consumers. The government has plans to install 10,763 public charging stations across the country under the FAME-II scheme.
State-Level EV Subsidies
In addition to the national-level incentives, several Indian states have introduced their own EV subsidy schemes to boost the adoption of electric vehicles.
Tax Benefits
Under Section 80EEB, individuals can claim a deduction of up to ₹1.5 lakh on the interest paid on loans taken to purchase electric vehicles. This can reduce the effective cost of owning an EV.
How does EV Subsidy work state-wise?
An EV subsidy is a financial incentive that the government provides to reduce the cost of electric vehicles. Subsidies could be in the form of direct cash benefits, road tax exemptions, or maybe registration fee waivers.
EV Subsidy in Gujarat
|
Subsidy Amount |
₹20,000 for electric two-wheelers, ₹50,000 for electric three-wheelers, and ₹1.5 lakh for electric cars |
|
Additional Benefits |
Exempted from road tax and registration fees |
|
Claim Process |
Login to the Gujarat EV subsidy portal & follow the online application process |
EV Subsidy in Delhi
|
Subsidy Amount |
Up to Rs 30,000 for electric two-wheelers & ₹1.5 lakh for electric cars. 25% subsidy of up to ₹5,500 on the purchase of electric cycles, |
|
Additional Benefits |
Scrapping incentives for old petrol vehicles |
|
Claim Process |
Apply via the Delhi EV Subsidy Portal |
EV Subsidy in Maharashtra
|
Subsidy Amount |
Up to ₹10,000 for electric two-wheelers, ₹50,000 for electric three-wheelers, and ₹1 lakh for electric cars |
|
Additional Benefits |
Exempted from road tax and registration fees |
|
Claim Process |
Apply via the Maharashtra EV Subsidy Portal |
EV subsidy in Odisha
|
Subsidy Amount |
15% of the vehicle cost for electric two-wheelers and three-wheelers |
|
Additional Benefits |
100% exemption on road tax and registration fees |
|
Claim Process |
Apply via the Odisha EV Subsidy Portal |
EV subsidy in Uttar Pradesh (UP)
|
Subsidy Amount |
Up to ₹20,000 for electric two-wheelers, ₹30,000 for electric three-wheelers & ₹1.5 lakh for electric cars |
|
Additional Benefits |
100% exemption on road tax and registration fees |
|
Claim Process |
Apply via the Uttar Pradesh EV Subsidy Portal |
EV subsidy in Rajasthan
Rajasthan is offering significant incentives to promote EV adoption:
|
Subsidy Amount |
Up to ₹5000 for electric two-wheelers, ₹ 20,000 for three-wheelers & ₹50,000 for electric cars |
|
Additional Benefits |
The incentives include cash subsidies, stamp duty exemption, and SGST reimbursement. |
|
Claim Process |
Apply via the Odisha EV Subsidy Portal |
EV subsidy in Haryana
|
Subsidy Amount |
Up to ₹5,000 for electric two-wheelers & ₹30,000 for electric three-wheelers. Incentives of up to 15% of the ex-showroom price, up to ₹6 lakh |
|
Additional Benefits |
Offers employment generation subsidy for EV manufacturing units |
|
Claim Process |
Apply via the Haryana EV Subsidy Portal |
How to check EV subsidy status online?
- Login to the EV Subsidy Portal Website of your respective state.
- Click on “Check Status” and “Track Application”
- Share your application ID or Vehicle Details
- Click "Submit" to view your current status
How to calculate the EV Subsidy?
- Choose your state and vehicle type
- Mention the ex-showroom price of your vehicle.
- The calculator will show you the following results.
- Central subsidy (fame ii)
- State subsidy
- Total subsidy amount
- Your final on-road price after subsidies
The following state’s policies do not include a direct subsidy for electric cars and SUVs
- Andhra Pradesh
- Karnataka
- Madhya Pradesh
- Punjab
- Rajasthan
- Tamil Nadu
- Telangana
- Uttarakhand
- Uttar Pradesh
Bottom Line
The EV Subsidy in India is a vital step towards making electric vehicles more affordable and accessible, thus encouraging sustainable transportation across the country. By offering financial incentives and tax benefits, the government is not only helping consumers make the switch to cleaner mobility but also fostering innovation and growth in the green energy sector.
FAQs on EV Subsidy in India
Is there an EV subsidy in Goa?
Yes, Goa offers subsidies of up to ₹30,000 for electric two-wheelers and ₹3 lakh for electric cars, along with road tax exemptions.
How to check the EV subsidy status in Delhi?
Visit the official Delhi EV subsidy portal, click on "check status," enter your application details, and you'll see your current subsidy status.
Which state has the highest subsidy on EVs?
Gujarat offers the highest subsidy for electric vehicles (EVs) in India. The state offers subsidies for electric two-wheelers, three-wheelers, and cars.
What are the tax benefits of EVs?
Section 80EEB of the Income Tax Act allows you to claim tax savings of up to Rs.1.5 lakh on interest paid on a loan made specifically to purchase an electric car.
