Electric scooter and car subsidies: Here’s how much subsidy you get on EV in India from centre and state

We have already talked about the effectiveness and value of buying an electric vehicle in India right now. Slowly, but surely the prices of fuel are prompting people to make the switch in the country. While it seems to be working for most buyers, owning an EV is generally a costly affair. You might feel that running on electric power means saving up on petrol/diesel running costs. But there is a big difference in what you pay for a regular car and EV right now. Thankfully, the states have released the importance of EVs, which is why they have doled out special subsidies for people buying an electric vehicle across different parts of the country. So, here we are going to look at incentives state and centre governments are offering to buyers switching to EV.

Also Read: EV cars in India: Reasons to buy and not to buy electric vehicles in 2021

Electric scooter and car subsidy in India by the central government

Before we get down to state subsidies on electric vehicles, let’s quickly take a look at the central government incentives. The union government under FAME-II aka Faster Adoption and Manufacturing of Hybrid and Electric vehicles is offering

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

In addition to them, there are schemes by the Ministry of Finance that offer a lower rate of GST at 5 percent on all EVs and tax benefits of up to Rs 1.5 lakh for first-time buyers. Having said that, these EV subsidies/ incentives are over and above the state incentives and are applicable throughout India. They only apply to the first 10 lakh electric two-wheelers and 55,000 electric four-wheelers, priced under Rs 1.5 lakh and 15 lakh respectively.

State-wise electric scooter/ bike subsidies in India

Most industry reports highlight the demand for electric two-wheelers being more than four-wheelers. So, it’s obvious that states have segregated the subsidies based on that. The benefits have been calculated as per the battery capacity which is measured in kWh. Here is a detailed look at state-wise subsidies offered on electric scooters and bikes:

State	Battery capacity cost	Max Subsidy	Other benefits
Delhi	Rs 5,000/ kWh	Rs 30,000	No road tax, registration fees up to Rs 10,000 scrapping incentive
Maharashtra	Rs 5,000/ kWh	Rs 10,000 for the 1st 10 lakh buyers	No road tax, registration fees up to Rs 15,000 early-bird incentive till December 31st up to Rs 7,000 scrapping incentive Rs 12,000 incentive with buyback scheme min 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 1.1 lakh electric two-wheelers	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	Rs 20,000	No road tax, registration fee
Bihar	Rs 10,000/ kWh	Rs 20,000	No road tax, registration fee up to Rs 14,000 subsidy on Li-ion battery
Goa	Rs 10,000/ kWh	Rs 30,000 per annum for 5 years	No road tax, registration fee up to Rs 10,000 scrapping incentive
Rajasthan	Rs 2,500/ kWh	Rs 10,000	No road tax, registration fee SGST reimbursement
Odisha	–	Rs 5,000	No road tax, registration fee
West Bengal	Rs 10,000/ kWh	Rs 20,000	No road tax, registration fee
Uttar Pradesh	N/A	N/A	No road tax, registration fee for the first 1 lakh electric scooters/ bikes
Madhya Pradesh	N/A	N/A	Registration fee waiver
Kerela	N/A	N/A	Registration and road tax waiver
Punjab	N/A	N/A	No road tax, registration fees
Karnataka	N/A	N/A	Registration and road tax waiver
Andhra Pradesh	N/A	N/A	No road tax, registration fee till 2024
Tamil Nadu	N/A	N/A	Registration fee waiver until 2024 No road tax
Uttarakhand	N/A	N/A	No road tax, registration fee for the first 1 lakh electric scooters/ bikes

As you can see, Delhi offers maximum subsidies on EVs. This is followed by Maharashtra and Meghalaya. Most regions have also exempted road tax, except for Gujarat, which takes 50 percent road tax with the final buying price. The number of states not offering any subsidies is much higher right now and includes Karnataka, Andhra Pradesh, Madhya Pradesh and Tamil Nadu among others.

State-wise electric car subsidies in India

It’s not just the electric scooters that are getting subsidies from various states. Even buying an electric car such as Tata Nexon EV and Hyundai Kona Electric gets you special benefits. Here is a state-wise breakup of where you get the best subsidy on your EV purchase.

State	Battery capacity cost	Max Subsidy	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 bird incentive till December 31st up to Rs 25,000 scrapping incentive
Delhi	Rs 10,000/ kWh	Rs 1,50,000 for the first 1,000 buyers	No road tax, registration fee
Gujarat	Rs 10,000/ kWh	Rs 1,50,000 for the first 10,000 buyers	No road tax, registration fee
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 first 2,500 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	Rs 1,00,000	No road tax, registration fees
Chandigarh	N/A	N/A	No road tax, registration fees till 2024
Punjab	N/A	N/A	No road tax, registration fees
Uttarakhand	N/A	N/A	No road tax, registration fees for the first 1 lakh electric vehicles
Uttar Pradesh	N/A	N/A	No road tax, registration fees for the first 1 lakh electric vehicles
Madhya Pradesh	N/A	N/A	No registration fees
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 above table clearly shows us Maharashtra and Delhi leading the way, when the schemes started. The early bird incentives seem to have been picked up already. While other states continue to push more people to buy EVs in the country. Again, except for Gujarat, all states have exempted road tax on buying electric cars.

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