Here is the subsidy amount you get for electric vehicles in central and state India


We have already talked about the efficiency and value of buying an electric vehicle in India right now. Slowly, but surely, fuel prices are driving people to make the switch in the country. While it seems to work for most buyers, owning an EV is usually a costly affair. You might get the impression that running on electricity means saving on gasoline / diesel running costs. But there’s a big difference in what you pay for a regular car and an EV right now. Fortunately, states have exposed the importance of electric vehicles, which is why they have distributed special grants to people buying electric vehicles in different parts of the country. So, here, we’re going to take a look at the incentives that state and central governments offer to buyers who switch to EVs.

Read also: Electric cars in India: Reasons to buy and not to buy electric vehicles in 2021

Central Government Electric Scooter and Car Grant in India

Before we move on to state subsidies on electric vehicles, let’s take a quick look at central government incentives. The unity government under FAME-II aka The faster adoption and manufacture of hybrid and electric vehicles offers

  • A direct incentive of Rs 15,000 per kWh of battery capacity (maximum 40% of the cost of the vehicle) on scooter / electric bike
  • A direct incentive of Rs 10,000 per kWh of battery capacity (maximum Rs 1.5 lakh) on four-wheeled vehicles or electric cars and up to Rs 13,000 per e4W (plug-in hybrid, powerful hybrid) capped at 20 % of the cost of the vehicle.

In addition to them, there are Ministry of Finance programs that offer a GST rate of less than 5% on all electric vehicles and tax benefits of up to Rs 1.5 lakh for first time buyers. Having said that, these subsidies / incentives for electric vehicles are in addition to the state incentives and are applicable throughout India. They only apply to the first 10 electric two-wheeled lakhs and 55,000 electric four-wheelers, the price of which is respectively less than Rs 1.5 lakh and 15 lakh.

State Grants for Electric Scooters / Bikes in India

Most industry reports point out that the demand for electric two-wheelers is greater than that for four-wheelers. So it is obvious that the states have segregated the grants based on this. The benefits have been calculated based on the battery capacity which is measured in kWh. Here’s a detailed look at state subsidies for electric scooters and bikes:

State Battery capacity cost Maximum grant Other benefits
Delhi Rs 5,000 / kWh 30,000 rupees
  • No road tax, registration fees
  • incitement to breakage up to Rs 10,000
Maharashtra Rs 5,000 / kWh Rs 10,000 for the 1st buyers of 10 lakh
  • No road tax, registration fees
  • up to Rs 15,000 early registration bonuses until December 31
  • up to Rs 7,000 scrapping incentive
  • Rs 12,000 incentive with buyback program
  • minimum 5 years warranty on the battery
Meghalaya Rs 10,000 / kWh Rs 20,000 for the first 3,500 electric scooter
  • No road tax, registration fees
Gujarat Rs 10,000 / kWh Rs 20,000 for the first electric two-wheelers of 1.1 lakh
  • No road tax, registration fees
Chandigarh Rs 20,000 for the first 3,000 vehicles
  • No road tax, registration fees
Assam Rs 10,000 / kWh 20,000 rupees
  • No road tax, registration fees
Bihar Rs 10,000 / kWh 20,000 rupees
  • No road tax, registration fees
  • up to Rs 14,000 subsidy on Li-ion battery
Goa Rs 10,000 / kWh Rs 30,000 per year for 5 years
  • No road tax, registration fees
  • incitement to breakage up to Rs 10,000
Rajasthan Rs 2500 / kWh 10,000 rupees
  • No road tax, registration fees
  • SGST refund
Odisha 5,000 rupees
  • No road tax, registration fees
West Bengal Rs 10,000 / kWh 20,000 rupees
  • No road tax, registration fees
Uttar pradesh N / A N / A
  • No road tax, registration fee for first scooters / electric bikes 1 lakh
Madhya Pradesh N / A N / A
Kerela N / A N / A
  • Registration and exemption from road tax
Punjab N / A N / A
  • No road tax, registration fees
Karnataka N / A N / A
  • Registration and exemption from road tax
Andhra Pradesh N / A N / A
  • No road tax, registration fees until 2024
Tamil Nadu N / A N / A
  • Exemption from registration fees until 2024
  • No road tax
Uttarakhand N / A N / A
  • No road tax, registration fee for first scooters / electric bikes 1 lakh

As you can see, Delhi offers maximum subsidies on electric vehicles. Then come Maharashtra and Meghalaya. Most regions have also exempted from road tax, with the exception of Gujarat, which levies 50% road tax on the final purchase price. The number of states offering no grants is much higher at the moment and includes Karnataka, Andhra Pradesh, Madhya Pradesh, and Tamil Nadu, among others.

State subsidies for electric cars in India

It is not just electric scooters that receive subsidies from various states. Even buying an electric car such as Tata Nexon EV and Hyundai Kona Electric gives you special benefits. Here’s a breakdown by state of where you get the best grant for your EV purchase.

State Battery capacity cost Maximum grant Other benefits
Maharashtra Rs 5,000 / kWh Rs 1,50,000 for the first 10,000 buyers
  • No road tax, registration fees
  • up to Rs 1,00,000 early registration bonus until December 31
  • incitement to breakage up to Rs 25,000
Delhi Rs 10,000 / kWh Rs 1,50,000 for the first 1,000 buyers
  • No road tax, registration fees
Gujarat Rs 10,000 / kWh Rs 1,50,000 for the first 10,000 buyers
  • No road tax, registration fees
Assam Rs 10,000 / kWh for electric cars priced above Rs 15 lakh Rs 1,50,000 for the first 25,000 buyers
  • No road tax, registration fees
Bihar Rs 10,000 / kWh Rs 1,50,000 for the first 5,000 buyers
  • No road tax, registration fees
West Bengal Rs 10,000 / kWh Rs 1,50,000
  • No road tax, registration fees
Meghalaya Rs 10,000 / kWh for electric four-wheelers priced above Rs 15 lakh Rs 60,000 for the 2,500 first buyers
  • No road tax, registration fees
Goa Rs 10,000 / kWh Rs 1,50,000 for the first 500 electric cars
  • No road tax, registration fees
Odisha N / A 100,000 rupees
  • No road tax, registration fees
Chandigarh N / A N / A
  • No road tax, registration fees until 2024
Punjab N / A N / A
  • No road tax, registration fees
Uttarakhand N / A N / A
  • No road tax, registration fee for first electric vehicles 1 lakh
Uttar pradesh N / A N / A
  • No road tax, registration fee for first electric vehicles 1 lakh
Madhya Pradesh N / A N / A
Karnataka N / A N / A
  • No road tax, registration fees
Rajasthan N / A N / A
  • No road tax, registration fees
Kerela N / A N / A
  • No road tax, registration fees
Telangana N / A N / A
  • No road tax, registration fees
Tamil Nadu N / A N / A
  • No road tax, registration fees
Andhra Pradesh N / A N / A
  • No road tax, registration fees

The table above clearly shows us Maharashtra and Delhi leading the way when the projects started. Incentives for early risers seem to have already been taken. As other states continue to push more people to buy electric vehicles in the country. Again, with the exception of Gujarat, all states have exempted the road tax on the purchase of electric cars.

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