Leaning toward clean energy initiative plans discussed in global meetings, India has made its landmark entry into the world of electrification in the last few years.
Though changing the environment in a day is implausible, the Indian government has taken several initiatives to support the popularization of electric mobility while undertaking small steps that will show results over time.
Did you know that India made its debut in electric vehicles back in the late 1990s?
India’s electric vehicles journey started with Bijlee, made by Mahindra & Mahindra way back in 1999 and M&M then acquired Reva Electric Vehicle Company that were making waves in the early 2000s.
However, due to insufficient technology along with sky-high prices, these vehicles saw a rapid decline.
Cost and sufficient charging infrastructure are some of the key hurdles that Indian markets must pass to emerge as a global name in the World’s EV space.
However, with the way the world is reforming with the integration of disruptive technologies every passing day, Electric Vehicles (EVs) are steadily inching toward the reach of mainstream buyers.
Concerned with the high price range of EVs in the Indian market due to the lack of local manufacturing units, the Indian government has rolled out a few plausible Subsidy on Electric Vehicles in India.
Centre’s Initiative on EV Ecosystem
In its efforts to reach the full electrification target by 2030, the Central government has given certain relaxations as well as incentives with the launch of its national FAME-II scheme, among others.
If you want more detailed information on the government’s initiatives for EVs, check out my previous article, “Top Indian Government Initiatives You Must Know in 2022”.
Apart from center-based EV policies, we must discuss some of the notable efforts of some states for their Subsidy on Electric Vehicles in India.
Subsidy on Electric Vehicles in India– State-wise
Listing some of the notable states that offer Government Subsidy on Electric Vehicles in India on both two and four-wheeler vehicles.
Maharashtra
Being a resident of Maharashtra, the Subsidy on Electric Vehicles in India ranges from INR 5,000 per kWh on a two-wheeler and if you purchase a 4-wheeler EV, the maximum Subsidy on Electric Vehicles in India for Maharashtra is around INR 1.5 Lakh if you are amongst the first 10,000 buyers.
The state government is also offering a scrapping incentive of up to INR 25,000. In the case of a 2-wheeler loan, you can get a subsidy of up to INR 10,000 for the first 10 Lakh buyers. Road tax and registration fees have also been exempted to scale up the purchase in the state.
Delhi
In efforts to transform the capital as the next EV hub, Delhi Government has offered a Subsidy on Electric Vehicles in India with a range of INR 10,000 kWh on 4-wheelers with a cap of INR 1.5 Lakh as the maximum subsidy only for the first 1,000 buyers. Similarly, for two-wheelers, the residents can enjoy INR 5,000 per kWh with a maximum subsidy of INR 30,000 with a scrapping incentive of INR 10,000. Also, charges such as road tax and registration fees are fully exempted.
Gujarat
The Gujrat government has rolled out a few notable Subsidy on Electric Vehicles in India. With the purchase of electric cars, the resident can avail of INR 10,000 per kWh as an incentive, and according to the early bird offer, 10,000 buyers can get a maximum of INR 1.5 Lakh in subsidies. However, for a two-wheeler, the residents are eligible to get an incentive of INR 10,000 kWh. Further, if you are one of the first 1.1 Lakh buyers, the Subsidy on Electric Vehicles in India for Gujrat is capped at INR 20,000 with zero registration fee and road tax.
Assam
The Electric Vehicle Policy of Assam, 2021, aims to improve air quality by enabling EVs to contribute 25% of all new vehicle registrations by 2026.
To get a better view of Subsidy on Electric Vehicles in India state-wise, the table shows the incentives and exemptions in detail.
| States | Max 2-wheeler Incentive (excluding FAME-II incentive) | Max 4-wheeler Incentive (excluding FAME-II incentive) | Registration/Road Tax Exemption |
| Delhi | Rs 30,000 | Rs 1.5 lakh (Only for First 1000 Buyers) | Yes |
| Maharashtra | Rs 37,000 + Rs 7,000 scrapping incentive | Rs 2.5 lakh + Rs 25,000 scrapping incentive | Yes |
| Gujrat | Rs 20,000 | Rs 1.5 lakh
|
Yes
|
| Meghalaya | Rs 10,000/kWh | Rs 4,000/kWh
|
Yes |
| Karnataka | – | –
|
Yes
|
| Andhra Pradesh | – | – | Yes |
| West Bengal | Rs 20,000 | Rs 1.5 lakh | Yes |
| Rajasthan | Rs 10,000 | – | No, SGST reimbursement |
| Odisha | Rs 5,000 | Rs 1 lakh | Yes |
| Kerala | – | – | 50 per cent exemption |
| Uttar Pradesh | – | – | Yes for 2-wheelers, 75 per cent road tax waiver for other EVs |
| Madhya Pradesh | – | – | Free registration, 99 per cent tax exemption |
| Telangana | – | – | Yes |
| Tamil Nadu | – | – | Yes |
| Assam | Rs 20,000 | Rs 1.5 lakh | Yes |
| Goa | Rs 30,000 | Rs 1.5 lakh | Yes |
| Punjab* | – | – | Road tax exemption |
| Bihar* | Rs 20,000 | Rs 1.5 lakh | Yes |
*Only Draft of EV polices Announced