The central government has encouraged the adoption of electric vehicles for a long time through various subsidies and schemes. Some schemes are not active now. If you are planning to buy an electric car, you should check some government subsidies here.
Electric Cars Government Subsidy in India
The electric car market in India is growing fast, with the increasing fuel prices and people understanding the need for environmental protection. The landscape of electric vehicles is evolving now; we have electric buses, ambulances, and other vehicles.
The central government has started various subsidies and schemes to encourage people to embrace EVs and switch to eco-friendly transport. The FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) was one of the revolutionary subsidies launched in 2013.
The FAME II central government subsidy, which ended in 2024, promoted EVs in India, offering a maximum of ₹1.5 lakh for electric cars. While most central subsidies for 4Ws have ended, state policies are now an option for electric car buyers, as the government is focusing on other EVs.
State-wise government subsidy for electric cars in India
Now, as you know, central government subsidies are almost nil for electric cars because the government is focusing on the EV infrastructure, and other vehicles, such as e-buses, ambulances, 3-Ws, etc. You can opt for state subsidies for the electric cars offered by many states.
Here we have listed some state and their electric subsidy for the residents on the purchase of EVs:
| State | About the subsidy | Application |
| Delhi | The capital of India offers an electric car subsidy of up to ₹1.5 lakh for electric cars.Additionally, the state also offers road tax and registration fee exemptions under the subsidy. | Apply through the Delhi EV Policy portal at https://transport.delhi.gov.in/transport/delhi-ev-policy or visit the nearby office. |
| Gujarat | The state offers a government subsidy of up to ₹10,000 per kWh for electric cars. | You can claim it on the e-VEG portal of the state, where you can select your subsidy, buy the vehicle, and claim the subsidy. |
| Maharashtra | The government offers up to ₹2 lakh subsidy for electric cars. The state offers toll waivers for EV passengers on key expressways. | You should buy the electric car from an approved dealer and register it with the Maharashtra RTO, and you will be enrolled for the subsidy. |
| Tamil Nadu | Offer 100% off on registration fees and road tax for electric cars. Subsidy up to ₹1 lakh is available for the cars, depending on the criteria. | You can enroll for a subsidy when you register your new electric car with the official RTO. |
| Rajasthan | The state offers a subsidy of up to ₹1.5 lakh (₹10,000 to ₹20,000 per kWh) on electric cars. | After your purchase, visit the official EV subsidy portal and submit the application with valid details. |
| Telagana | Offer 100% off on registration fees and road tax until 31 December 2026 and ₹1.5 lakh on electric cars. | Visit the Telangana state portal and go to EV Purchase incentives, and submit the application. |
| Uttar Pradesh | Up to ₹1 lakh subsidy for an electric car with free registration and no road tax for a certain period. | Go to the UP EV Subsidy portal and submit your application with proper details of the vehicle and yours. |
| Karnataka | It offers subsidies up to ₹1.5 lakh for electric cars in its EV policy for cars costing less than ₹25 lakh. | Go to the ev-Jagrithi app and complete your subsidy application. |
These are some major states with EV subsidies. If you wish to receive a subsidy but live in another state, you should first check with the government if there is any state subsidy available for electric cars.
Other benefits of an Electric Car purchase
If you are planning to buy an electric car, you may unlock other benefits when you purchase the EVs, such as:
- Section 80EEB: If you have taken a loan to purchase an Electric car, you can access the tax deduction on the interest paid. The limit under the tax deduction is ₹1.5 lakh for loans sanctioned between April 2019 and March 2023.
- GST benefit: Now, the government has dropped the GST applied to electric cars, effective from 22 September 2025. The EVs have the lowest GST, which is 5% on the EVs
- Road Tax and registration fees exemption: Many states offer road tax and registration fees exemption on the purchase of electric cars.
How do subsidies impact the electric car adoption?
With the government subsidies, the electric car adoption is highly impacted in the following way:
- With support from the government, people can buy an electric car without worrying about the high upfront cost of EVs.
- The transition to electric cars from petrol/diesel cars was easy for people, but the major concern is still the charging stations.
- According to reports, between 2020 and 2024, the registrations of electric cars increased by 300% under FAME II and state-level subsidies.
The electric car subsidies are still available at the state level; hence, if you are planning to buy, do check with your state officials to get some financial relief.
