What are the discounts and rebates EV electric vehicle buyers will get from the Indian govt?


We all know that electric vehicles or EVs will become mainstream in the coming decades. Europe has made it clear that it might phase out all petrol and diesel-powered vehicles by 2035, and other developed countries have also taken the pledge to keenly work on it. Developing nations such as India will follow the winds, and it has already taken steps to make EVs more mainstream. Electric vehicles are still more expensive in India than in many developed countries. To assist with this, the Indian government has been gradually taking steps to accelerate EV adoption in the country, by providing various subsidies and incentives to both car manufacturers and car buyers. The incentives differ depending on which Indian state you live in. The new concessions are being introduced as electric vehicle regulations are evolving, which is further confusing EV buyers. So in order to make things a bit less confusing, the main rebates for EV vehicles being provided are mentioned in this article, both by the central and some major state governments. 

“Vibrant” by Peter E. Lee is licensed under CC BY-NC 2.0

Subsidy by the Central Government

The Department of Heavy Industries revised the 2019 Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme to provide 50% more incentives for the EVs. The incentives provided are, for two-wheelers: Rs 15,000 per kWh of battery capacity, up to 40 percent of the vehicle cost, and for four-wheelers: Rs 10,000 per kWh of battery capacity, up to Rs 1.5 lakh. The above benefits apply to electric cars and two-wheelers that meet the FAME-II scheme’s criteria, in addition to state government concessions. The Tata Nexon EV, Mahindra e-Verito, and Tata Tigor EV are currently available in India and meet the eligibility criteria for this scheme. But don’t worry, even if your next EV isn’t one of these three, a recently drafted amendment to the Central Motor Vehicle Rules, if approved, will exempt all-electric vehicles in the country from registration and renewal fees.


Delhi has the best EV policy by matching the central government’s subsidies. The advantages of purchasing an EV in Delhi are nearly double those of other states. Furthermore, under the current scheme, the state government has waived registration fees and road tax on all types of electric vehicles. The Delhi government website currently lists 72 charging stations, making it one of the best places in the country to own an electric car or two-wheeler. Keep in mind that the benefits for electric vehicles apply only to the first 1,000 vehicles registered in the state. Subsidy for two-wheelers: Rs 5,000 rupee per kWh of battery capacity, up to a maximum of Rs 30,000 rupee, plus registration and road tax exemption. Car subsidy: Rs 10,000 rupee per kWh of battery capacity, up to Rs 1.5 lakh rupee, plus registration and road tax exemption.


Meghalaya’s 2021 EV policy is currently aimed at early adopters in the north-eastern state, and it will cover fewer vehicles than the other state policies on this list. With 3,500 two-wheelers and 2,500 four-wheelers covered, this is a good proportion considering the population of the state. The EV policy in Meghalaya is valid for 5 years and exempts all EVs from registration fees and road tax. According to the official document, EVs will be given priority registration at all state Road Transport Offices (RTOs). For the duration of the policy, the state government will encourage the establishment of EV charging stations by providing lower electricity tariffs and free land to the government, public sector, and private companies. Subsidy for two-wheelers: Rs 10,000 rupee per kWh of battery capacity + exemption from registration and road tax. Car subsidy: Rs 4,000 rupee per kWh of battery capacity plus registration and road tax exemption. 


Maharashtra revised its EV policy in 2021, and now offers electric four-wheeler buyers a total benefit of up to Rs 2.75 lakh rupee rebates for EV vehicles. This includes a Rs 1.50 lakh rupee basic subsidy, a Rs 25,000 rupee scrappage incentive, and a Rs 1 lakh rupee ‘early bird incentive’ that will be available until the end of 2021. Furthermore, all-electric vehicles registered in Maharashtra are currently exempt from road tax and registration fees. Subsidy for two-wheelers: Rs 10,000 rupee + Rs 15,000 rupee early bird bonus + Rs 7,000 rupee scrappage bonus + Rs 12,000 rupee other bonuses + registration and road tax exemption. Car subsidy: Rs 1.50 lakh rupee + Rs 25,000 rupee scrappage + Rs 1 lakh rupee early bird bonus + registration and road tax exemption. 


Karnataka’s contribution to making EVs more affordable and accessible in India is less direct, but it is no less significant than the contributions of the other states on this list. The state government’s EV policy was recently amended to provide even more concessions and subsidies to EV component and battery manufacturers, battery swapping businesses, and EV charging businesses. Apart from inviting Tesla to the state, Karnataka exempts electric vehicles from paying road tax and registration fees.


These were some main rebates for EV vehicles that are being provided in India by both the central government and the government of some major states in India. In 2021, the number of states with EV policies will continue to grow. Telangana waives the registration fee and the road tax. Goa has announced that electric two-wheelers will be exempt from registration fees and road taxes. A 2019 draft amendment to Bihar’s EV policy, if approved, will match the Center’s Rs 20,000 rupee subsidy on electric 2-wheelers and Rs 1.5 lakh rupee subsidy on electric cars! Uttar Pradesh, Kerala, Uttarakhand, Madhya Pradesh, Tamil Nadu, Gujarat, Punjab, and Chandigarh are among the other states that have drafted EV policies. However, there are several more obstacles to overcome. For one thing, the number of beneficiaries under each scheme is limited, and not all electric vehicles sold in India are eligible for subsidies. Heavy taxes on EVs and hybrids imported as completely built units (CBUs) by automakers have further limited options for those looking for an affordable EV. We hope that future policies will correct the course so that electric vehicles become the norm for urban transportation.