How to Avail Subsidy for Electric Vehicles in India?
Electric vehicles (EVs) have become the best way of transportation, and the Indian government is actively promoting their adoption by offering attractive subsidies and incentives. If you are planning to buy an electric vehicle, understanding how to avail subsidy for electric vehicles in India can save you a significant amount of money.
This clear and simple guide covers all the essentials, including the latest subsidy schemes, eligibility criteria, and step-by-step instructions to claim your benefits.
What Is the Current EV Subsidy Scheme in India?
The main government subsidy program for electric vehicles in India is the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India Scheme, now in its second phase called FAME-II. Launched in 2019 for an initial three-year period and extended further, FAME-II aims to promote electric mobility by providing demand incentives primarily on electric 2-wheelers, 3-wheelers, and 4-wheelers.
- Under FAME-II, buyers can get subsidies based on battery capacity, with two-wheelers receiving up to ₹15,000 per kWh and four-wheelers up to ₹10,000 per kWh.
- The scheme focuses on advanced battery technology vehicles and encourages manufacturing and adoption across India, including rural areas.
From 2024, the government launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme to continue support till 2026, expanding incentives to e-trucks, e-buses, e-ambulances, and deployment of EV public charging stations.
Who Is Eligible for EV Subsidies in India?
Eligibility for subsidies varies by vehicle type and usage:
- Electric Two-Wheelers (e-2Ws): Eligible vehicles must have batteries with a minimum 2 kWh capacity and be registered either privately or commercially.
- Electric Three-Wheelers (e-3Ws): Includes registered commercial vehicles like electric rickshaws and carts.
- Electric Four-Wheelers (e-4Ws): Private and commercial passenger vehicles fitted with advanced battery technology are eligible.
The subsidy applies only to electric vehicles conforming to technical and battery standards as notified by the government. Hybrid vehicles are partially covered based on their tech specifications. Buyers must ensure that their vehicle and dealer are registered under the FAME scheme to claim the subsidy.
How to Avail Subsidy for Electric Vehicles in India? Step-by-Step
- Choose an Eligible Vehicle:
Verify that the electric vehicle you intend to buy is registered under the FAME-II or PM E-DRIVE subsidy scheme. Check manufacturer and dealer eligibility on official portals. - Buy from Authorized Dealers:
Purchase the EV through authorized dealerships recognized under the government’s schemes to automatically avail the subsidy. - Vehicle Registration:
Register your vehicle as per state norms, providing correct documentation showing it as an electric vehicle. - Submit Subsidy Application:
For commercial vehicles, owners need to apply via the Ministry of Heavy Industries or related online portals. For private buyers, subsidies are generally passed on as a direct price reduction from the dealer. - Check State-Level Incentives:
Many states offer additional subsidies, VAT exemptions, reduced road tax, or registration fee waivers for EVs. Check your state government website or transport department to apply for these. - Claim Subsidy After Purchase (If Applicable):
In some cases, subsidy reimbursement requires post-purchase application with proof of payment and registration.
Following these steps ensures you maximize government benefits and reduce the upfront cost of your EV.
Why Is Availing Subsidy Important?
Electric vehicles generally have a higher upfront cost than petrol or diesel vehicles. The government subsidies and incentives help bridge this price gap, making green transport more affordable. Subsidies decrease the financial burden and shortens the break-even point with fuel savings and lower maintenance over time.
Incentives also encourage manufacturers to ramp up EV production and infrastructure development such as public charging stations, forming a healthier ecosystem for sustainable transport.
Conclusion
Availing subsidy for electric vehicles in India is a straightforward yet critical step to economize your investment in clean transportation. The government’s flagship FAME-II and PM E-DRIVE schemes provide substantial monetary incentives for eligible electric two-wheelers, three-wheelers, and four-wheelers.
By choosing certified electric vehicles, purchasing from authorized dealers, registering your vehicle, and applying for state-level benefits, you can significantly reduce your initial costs while contributing to India’s green future.
Start your EV journey today by exploring subsidy-eligible models and checking local incentives to make electric mobility truly affordable.
What is the current subsidy available for electric two-wheelers in India?
Under FAME-II, electric two-wheelers qualify for up to ₹15,000 per kWh battery capacity, with a cap on maximum subsidy depending on the model.
Can private vehicle owners avail EV subsidies?
Yes, private registered electric two-wheelers and four-wheelers are eligible for subsidies under defined scheme guidelines.
Are subsidies applicable on imported EVs?
No, subsidies generally apply only to EVs manufactured or assembled in India, meeting domestic production criteria.
How do I apply for the subsidy?
Typically, subsidies are passed as dealer discounts for private buyers. Commercial vehicle owners might need to apply on government portals.
Does my state offer additional EV incentives?
Many states like Kerala, Delhi, Maharashtra, and Tamil Nadu offer extra benefits such as reduced road tax and registration fees.