EV Subsidy in India – State Wise Guide 2025

ByH Suresh Posted on

EV Subsidy in India – State Wise Guide 2025: Maximize Your Savings on Electric Vehicles

The electric vehicle (EV) market in India is accelerating rapidly in 2025, thanks to growing environmental concerns, government initiatives, and increasing consumer interest. A significant catalyst driving this adoption is the variety of subsidies and incentives offered by both the central and state governments to make EVs more affordable and attractive.

This comprehensive guide details the EV subsidy landscape across India — outlining the state-wise incentives, eligibility, financial benefits, and key government schemes designed to support electric vehicle buyers. Understanding these benefits helps buyers maximize savings and make informed decisions in 2025.

Overview of Central Government EV Subsidy Schemes

FAME II (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles Phase II)

  • Objective: Promote eco-friendly vehicles via financial incentives.
  • Subsidy Amount: Up to ₹1.5 lakh for electric cars; ₹10,000 per kWh battery capacity (caps apply), and smaller subsidies for two and three-wheelers.
  • Eligibility: EVs priced below ₹15 lakh ex-showroom, meeting certain battery and range criteria.
  • Additional Benefits: Lower GST rates (currently 5%) and customs duty reductions on EV parts.

PM E-DRIVE Scheme (Pradhan Mantri Electric Drive Vehicular Initiative)

  • A recent initiative focusing on supporting EV adoption nationwide with subsidies for two-wheelers, three-wheelers, and e-buses based on battery capacity effective from 2025.

State-Wise EV Subsidies and Benefits in 2025

1. Maharashtra

  • Subsidy: Up to ₹2,50,000 for electric four-wheelers; ₹25,000 for two-wheelers.
  • Incentives: 100% road tax and registration fee waiver, scrapping old vehicle cashback, toll exemptions on certain highways.
  • Infrastructure: Plans to establish charging stations every 25 km on highways.
  • Policy Highlights: Support for EV manufacturing and R&D.

2. Gujarat

  • Subsidy: Up to ₹1,50,000 for electric cars; ₹20,000 for electric bikes.
  • Incentives: 100% exemption on road tax and registration fees.
  • Special Features: Focus on delivery and commercial electric vehicles.
  • Additional Benefits: Vehicle scrappage policy impacts subsidy eligibility.

3. Delhi

  • Subsidy: ₹5,000 per kWh for two-wheelers capped at ₹30,000; commercial EVs get higher support.
  • Road Tax: 100% waiver for EVs.
  • Benefits: Exchange bonuses and substantial scrappage incentives to encourage EV adoption.
  • Charging Infrastructure: Expanded rapidly with government and private collaboration.

4. Tamil Nadu

  • Subsidy: Up to ₹1,50,000 for electric cars under state policy.
  • Tax waiver: Complete registration and road tax exemption for EVs.
  • State Initiatives: Capital subsidies for EV manufacturers and incentives for battery and component suppliers.

5. Kerala

  • Subsidy: Ranges from ₹10,000 to ₹30,000 for electric autos and two-wheelers.
  • Road Tax: 50% concession for 5 years.
  • Other Benefits: Focus on e-rickshaw deployment and green urban transport.

6. Uttar Pradesh

  • Subsidy: Up to ₹75,000 for electric goods carriers; ₹10,000 per kWh battery for EVs.
  • Road Tax: 75%-100% waiver on electric vehicles.
  • Additional Facilities: Interest subvention schemes for fleet operators.

7. Rajasthan

  • Incentives: Up to ₹50,000 subsidy for electric two-wheelers; 100% registration fee waiver.
  • State Strategy: Promoting EVs in urban transport with supportive policies.

8. Meghalaya

  • Subsidy: Up to ₹60,000 for electric four-wheelers; ₹20,000 for two-wheelers.
  • Waivers: Complete exemption from road tax and registration fees.
  • Unique Features: Aggressive incentives despite smaller market size.

9. Telangana

  • Incentives: 100% exemption on road tax and registration charges for EVs.
  • Focus: Urban electric vehicle adoption and supporting charging infrastructure.

10. Andhra Pradesh

  • Benefits: Full exemption on road tax and registration fees for EVs.
  • Policy: Strong state focus on electric mobility though lacking direct subsidy.

How to Avail State EV Subsidies?

  • Purchase an EV from a registered dealer within the state.
  • Ensure the vehicle meets subsidy eligibility criteria (price cap, battery capacity).
  • Register the vehicle locally and submit subsidy application via state transport department portals or schemes like e-AMRIT.
  • Combine state subsidy with central schemes like FAME II for maximum benefit.
  • Some states require scrapping of old fossil fuel vehicles for subsidy eligibility.

Important Considerations for Buyers in 2025

  • Eligibility Conditions Vary: Battery size, vehicle type, and purchase price limits vary by state and subsidy scheme.
  • Subsidy Caps: Central government caps the maximum subsidy per vehicle, beyond which only state benefits apply.
  • Tax Benefits: EVs enjoy lower GST (5%), often included alongside subsidies in the total cost.
  • Charging Infrastructure: Consider EV charging availability in your region as a practical factor.
  • Sustainable Ownership: Check warranty and battery replacement policies.

Additional Central and State Initiatives

  • Tata EV Mitra Scheme: Supports electric vehicle buyers and charging infrastructure with simplified subsidy claim processes.
  • Scrappage Policies: Many states incentivize scrapping old petrol/diesel cars to boost EV uptake.
  • FAME III (Expected): Proposed to incentivize affordable EVs and charging infrastructure further.

External References for EV Subsidies in India

Conclusion

India’s EV subsidy landscape in 2025 offers an unprecedented opportunity for buyers to reduce upfront and ownership costs substantially. State governments have embraced the green vehicle revolution through substantial financial incentives, tax exemptions, and infrastructure support, complementing central schemes like FAME II and PM E-DRIVE.

Prospective EV buyers should carefully check their state’s current subsidies, eligibility norms, and how these integrate with central benefits to maximize savings. This combined support transforms electric vehicles from aspirational to accessible, accelerating India’s transition to sustainable mobility.

Disclaimer: This article is published for general informational purposes based on research, observations, and owner experiences. It should not be considered professional, technical, or legal advice. Vehicle specifications, costs, and procedures may vary by model, location, and time. Readers are advised to verify details with official sources or qualified professionals before making decisions.

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H. Suresh is the founder and primary author of CarInsightHub.com. He is an automobile content creator based in Chennai, Tamil Nadu, who writes practical, India-focused guides on car buying, ownership costs, mileage, maintenance, insurance, and everyday driving decisions to help readers choose and own cars with confidence. Read More About Author H.Suresh

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