India’s shift towards sustainable mobility is gaining momentum with Electric Vehicles (EVs) becoming increasingly popular. To encourage adoption, central and state governments offer subsidies and incentives. The central government’s FAME-II scheme provides subsidies for EV purchases, while states like Delhi, Maharashtra and Gujarat offer additional incentives. Eligible buyers can claim benefits like reduced vehicle costs and charging infrastructure support. To avail these subsidies, applicants must meet specific criteria, such as purchasing from approved manufacturers, and submit applications through designated portals or dealerships. These incentives make EVs more affordable, driving India’s transition to eco-friendly transportation.
Central Government EV Subsidy – FAME II
India’s electric mobility revolution is driven by the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme. Launched by the central government, FAME II provides substantial incentives to make electric vehicles (EVs) affordable and promote infrastructure growth. Electric two-wheelers receive ₹15,000/kWh subsidies (capped at ₹40,000), while electric cars get up to ₹1.5 lakh based on battery capacity. Public transport operators benefit from incentives for electric buses and three-wheelers. FAME II also addresses charging infrastructure gaps by subsidizing EV charging stations. Technology-agnostic, the scheme supports various EVs, from two-wheelers to buses. By reducing vehicle costs and enhancing infrastructure, FAME II accelerates India’s transition to sustainable transportation, fostering a greener future. This initiative plays a vital role in expanding India’s electric vehicle ecosystem.
State-wise EV Subsidy Guide
In addition to the central government’s FAME II scheme, several Indian states have introduced their own EV policies and subsidies, offering targeted incentives to accelerate the adoption of EVs.
Below are the details of state-specific subsidies for 2024:
1. Delhi
Delhi has one of the most aggressive electric vehicle (EV) policies in India. The city offers significant subsidies, including ₹5,000 per kWh for electric two-wheelers (up to ₹30,000) and ₹10,000 per kWh for electric four-wheelers (up to ₹1.5 lakh). Additionally, EV owners benefit from exemptions on road tax and registration fees. To support widespread adoption, Delhi has invested heavily in public charging infrastructure, ensuring a reliable network of charging stations, which helps make owning and operating electric vehicles more convenient in the city.
2. Maharashtra
Maharashtra’s Electric Vehicle (EV) Policy offers subsidies to promote EV adoption. For electric two-wheelers, the state provides ₹5,000 per kWh, up to ₹20,000, while electric four-wheelers are eligible for ₹10,000 per kWh, with a cap of ₹1.5 lakh. Additionally, EV owners are exempt from road tax and registration fees, further reducing costs. The policy also focuses on expanding the EV charging network across major cities, ensuring convenient access to charging stations. These initiatives aim to make electric vehicles more affordable and practical for consumers, driving sustainable transportation in Maharashtra.
3. Tamil Nadu
Tamil Nadu’s Electric Vehicle (EV) Policy promotes the adoption and manufacturing of EVs in the state. The policy offers a ₹10,000 per kWh subsidy for electric two-wheelers, capped at ₹30,000, and ₹1,00,000 per vehicle for electric four-wheelers, making EVs more affordable for consumers. Additionally, the policy supports the establishment of fast-charging stations by providing incentives for setting up charging infrastructure. This initiative aims to address concerns about charging availability and boost the widespread adoption of electric vehicles, positioning Tamil Nadu as a key contributor to sustainable mobility in India.
4. Uttar Pradesh (UP)
Uttar Pradesh’s Electric Vehicle (EV) Policy aims to establish the state as a global hub for EV manufacturing and promote EV adoption. The policy offers a ₹10,000 per kWh subsidy for electric two-wheelers, capped at ₹25,000, and ₹15,000 per kWh for electric four-wheelers, with a maximum subsidy of ₹1.5 lakh. Additionally, the policy provides exemptions from road tax and registration fees, further reducing the cost of ownership. These incentives, along with a focus on manufacturing and infrastructure development, are designed to create a robust EV ecosystem and boost the state’s position in India’s EV transition.
5. Karnataka
Karnataka’s Electric Vehicle and Energy Storage Policy focuses on expanding the EV ecosystem and charging infrastructure. The policy offers subsidies for electric vehicles, with ₹15,000 per kWh for two-wheelers, up to ₹30,000, and ₹10,000 per kWh for four-wheelers, up to ₹1 lakh, reducing the cost for consumers. Additionally, the policy supports the development of EV charging stations, ensuring a reliable network of charging points across the state. These initiatives aim to make electric vehicles more affordable and practical, addressing key concerns like charging availability, and promoting the widespread adoption of EVs in Karnataka.
6. Andhra Pradesh
Andhra Pradesh’s EV Policy aims to foster a sustainable transportation ecosystem by offering significant subsidies for electric vehicles. Electric two-wheelers are eligible for ₹10,000 per kWh, up to ₹30,000, while electric four-wheelers receive ₹1 lakh per vehicle. The policy also includes exemptions from road tax and registration fees, reducing ownership costs. Additionally, subsidies are provided for the installation of EV chargers to support the development of charging infrastructure. These measures aim to promote the adoption of electric vehicles and ensure a smoother transition to cleaner mobility in the state.
Eligibility Check:
Ensure that the EV model you wish to purchase qualifies for the subsidy under both the central and state-level schemes.
Required Documentation:
Submit necessary documents such as proof of identity, address, the vehicle’s purchase receipt, and proof of battery capacity.
Application Process:
Most states offer online portals for submitting subsidy applications. Alternatively, you can apply through the EV dealer from whom you purchase the vehicle.
Approval Process:
Authorities will verify the information and approve the subsidy. The subsidy is typically adjusted during the vehicle purchase or disbursed to the consumer post-validation.
EV Subsidy Calculator: Estimate Your Savings
To estimate your savings from EV subsidies, you can use an online EV subsidy calculator. Start by selecting your state and the type of electric vehicle you’re interested in, such as a two-wheeler or a four-wheeler. Next, enter the ex-showroom price of the vehicle. The calculator will then provide you with the total subsidy amount, breaking it down into central subsidies under FAME II and state-specific incentives. Finally, the tool will show the final on-road price of the vehicle after all applicable subsidies are deducted, giving you a clear understanding of your savings.
Latest EV Subsidy News and Updates for 2024
The Budget 2024 has allocated increased funds to strengthen India’s EV infrastructure, with a focus on expanding charging stations. Discussions are also ongoing about extending the FAME II scheme beyond 2024 to ensure continued support for electric vehicle adoption. In addition, more states are expected to introduce comprehensive EV policies and subsidies in 2024, further expanding the reach of incentives. A key priority is the development of charging infrastructure, with more subsidies being offered to establish EV charging stations across major cities and highways, addressing one of the key challenges for EV adoption.
Conclusion
The EV subsidy landscape in India for 2024 offers a wide range of benefits aimed at reducing the cost of electric vehicles and supporting the development of necessary infrastructure. The combination of central and state-level schemes, including subsidies, tax exemptions, and infrastructure development, makes EVs more affordable and accessible to a wider population. To take full advantage of these incentives, it is essential to understand the specific subsidies available in your state and the process for claiming them. By leveraging these subsidies, you can significantly lower the cost of transitioning to electric vehicles and contribute to India’s shift towards a greener future.