India’s vehicle industry has continued to rely heavily on the internal combustion engine. Electric vehicles to being within reach of mainstream buyers as India’s initiatives to promote e-mobility.
Central government offers subsidies under the national FAME-II scheme, which make EVs even more affordable.
Each state has its own criteria for electric vehicle subsidies which means the benefits are more significant in some regions as bringing EVs closer to being an accessible option for mass-market.
State Electric Vehicles Subsidies on Electric Two-Wheelers
EV policies have been drawn up for a four-to-five-year period from the time of notification, and will only subsidise a limited number of vehicles.
Most Indian states are in their EV policies which have decided to allot subsidies for electric two-wheelers which are eligible for incentives under the FAME-II scheme on the basis of the size of their lithium-ion battery packs.
This incentive amount is decided on a ‘per kWh of battery capacity’ basis with only two states offering subsidies on a different basis.
In terms of the highest subsidy available is Delhi which offers an incentive of Rs 5,000 per kWh, and a maximum of Rs 30,000 provided the battery is bigger than 5 kWh.
Second on the list currently is Maharashtra offers a subsidy of Rs 5,000 per kWh with the total subsidy at Rs 10,000.
Early customers incentive get up to Rs 15,000 which is valid till 31st December, 2021.
The total subsidy for any electric two-wheeler with a 3 kWh or bigger battery would be eligible for is Rs 25,000.
State-wise Subsidies for Electric Two-Wheelers Vehicles
| State | per kWh of battery capacity | Max subsidy | Road tax exemption |
| Delhi | Rs 5,000 | Rs 30,000 | 100% |
| Maharashtra | Rs 5,000 | Rs 25,000* | 100% |
| Meghalaya | Rs 10,000 | Rs 20,000 | 100% |
| Gujarat | Rs 10,000 | Rs 20,000 | 50% |
| Assam | Rs 10,000 | Rs 20,000 | 100% |
| Bihar^ | Rs 10,000 | Rs 20,000 | 100% |
| West Bengal | Rs 10,000 | Rs 20,000 | 100% |
| Rajasthan | Rs 2,500 | Rs 10,000 | NA |
| Odisha | NA | Rs 5,000 | 100% |
| Uttar Pradesh | No | No | 100% |
| Kerala | No | No | 50% |
| Karnataka | No | No | 100% |
| Tamil Nadu | No | No | 100% |
| Telangana | No | No | 100% |
| Madhya Pradesh | No | No | 99% |
| Andhra Pradesh | No | No | 100% |
| Punjab^ | No | No | 100% |
States likes of Meghalaya, Assam, Gujarat and West Bengal offer a higher per kWh subsidy of Rs 10,000 with the total subsidy available at Rs 20,000.
Bihar’s EV policy is currently yet to be approved which going to offers similar benefits.
Rajasthan offers a subsidy of Rs 5,000 for two-wheelers with a 2 kWh battery and up to Rs 10,000 for one with a battery bigger than 5 kWh.
Odisha offers a flat subsidy of Rs 5,000.
States like Andhra Pradesh, Karnataka, Madhya Pradesh, Telangana, Tamil Nadu, Uttarakhand, Punjab and Uttar Pradesh do not offer any direct subsidies to electric two-wheeler customers under their policies.
Road tax for electric vehicles is completely cut off in most states where the policy has been implemented except for in Gujarat and Kerala where customers have to pay 50% of the total road tax amount.
State Electric Vehicles Subsidies on Electric Cars and SUVs
Electric cars and SUVs are subsidised by state EV policies.
The total number of vehicles cover under these policies are quite lower.
Electric cars have very large batteries and are eligible for a substantial amount of money in the form of subsidies.
Many states have total number of electric cars to be subsidised at 10,000 units.
The ex-factory cost limit for eligible vehicles is at Rs 15 lakh which means at present it’s only the Tata Tigor EV Ziptron and Tata Nexon EV that qualify for incentives in all states.
Large EVs includes likes of the MG ZS EV and Hyundai Kona Electric and these are not qualify for these subsidies.
Maharashtra base incentive of Rs 5,000 per kWh is the same as for electric two-wheelers but the maximum subsidy at Rs 1.50 lakh.
Early customers incentive of up to Rs 1 lakh accounted for the total subsidy amount rises to Rs 2.50 lakh.
State EV Subsidies on Electric Cars and SUVs
| State | per kWh of battery capacity | Max subsidy | Road tax exemption |
| Maharashtra | Rs 5,000 | Rs 2,50,000* | 100% |
| Delhi# | Rs 10,000 | Rs 1,50,000 | 100% |
| Gujarat | Rs 10,000 | Rs 1,50,000 | 50% |
| Assam | Rs 10,000 | Rs 1,50,000 | 100% |
| Bihar^ | Rs 10,000 | Rs 1,50,000 | 100% |
| West Bengal | Rs 10,000 | Rs 1,50,000 | 100% |
| Odisha | NA | Rs 1,00,000 | 100% |
| Meghalaya | Rs 4,000 | Rs 60,000 | 100% |
| Rajasthan | No | No | NA |
| Uttar Pradesh | No | No | 75% |
| Kerala | No | No | 50% |
| Karnataka | No | No | 100% |
| Tamil Nadu | No | No | 100% |
| Telangana | No | No | 100% |
| Madhya Pradesh | No | No | 99% |
| Andhra Pradesh | No | No | 100% |
| Punjab^ | No | No | 100% |
Gujarat, Assam and West Bengal offer a higher per kWh incentive of Rs 10,000 but the total subsidy is limited to Rs 1.50 lakh.
Delhi offer same amount as subsidy to the first 1,000 electric vehicle customers.
Bihar’s is yet to be notified EV policy also mentions similar benefits.
Odisha offers an incentive of up to Rs 1 lakh for eligible vehicles.
Meghalaya offers an incentive of Rs 4,000 per kWh and offers a total subsidy of Rs 60,000.
Rajasthan, Andhra Pradesh, Karnataka, Madhya Pradesh, Telangana, Tamil Nadu, Uttarakhand, Punjab and Uttar Pradesh do not extend direct subsidies for electric cars and SUVs in their policies.
Road tax for electric four-wheelers is completely cut off in most states that have implement the policy, except for in Gujarat and Kerala where buyers have to pay 50% of the total road tax amount.
Uttar Pradesh where buyers are have to pay 75% of the road tax amount.
Registration cut off all kinds of electric vehicles across the country.
Ministry of Road Transport and Highways (MoRTH) announce all battery-operated vehicles are exempt from ‘the payment of fees for the purpose of issue or renewal of registration certificate’ in August.
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