Electric vehicles are cost-effective, having fewer moving parts that require maintenance, and are green because they use very little or no fossil fuels (petrol or diesel). Some EVs utilized lead-acid or nickel-metal hydride batteries, but lithium-ion batteries are now the standard for battery electric vehicles because they are longer-lasting and better at retaining energy, with a rate of very little self-discharge.

It has already been discussed how effective and worthwhile it is to buy an electric vehicle now in India. People in this country are slowly but surely switching to alternative fuel as fuel prices rise. Ownership of an EV is generally a costly affair, even though it seems to be working for most buyers. The advantages of electric power may seem to be lower running costs compared to gasoline or diesel.

However, there is a significant difference between what you pay for an EV and a regular car. As a result, the states have released the importance of EVs, so they are offering special subsidies for those who purchase one. Therefore, here we are going to look at incentives that state and center governments offer to buyers who switch to electric vehicles.

Electric scooter and car subsidy in India by the central government

Let’s quickly review the central government incentives for electric vehicles before we move on to state subsidies. As part of the FAME-II program, the union government will facilitate the adoption of hybrids and electric vehicles

  • 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.

The Ministry of Finance also offers tax breaks for first-time buyers of EVs by offering the GST rate at 5 percent on all EVs. However, these EV subsidies/ incentives are over and above the state incentives, and they apply throughout the country. They are only applicable to the first 10 lakh electric two-wheelers and 55,000 electric four-wheelers priced under Rs 1.5 lakh and 15 lakh, respectively.

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State-wise electric scooter/ bike subsidies in India

The demand for electric two-wheelers is higher than that for four-wheelers, according to most industry reports. Therefore, it is evident that states have allocated subsidies accordingly. Based on the battery capacity, which is measured in kWh, the benefits have been calculated. Below is a detailed look at state-by-state subsidies for electric scooters and bikes:

StateBattery capacity costMax SubsidyOther benefits
DelhiRs 5,000/ kWhRs 30,000No road tax, registration fees up to Rs 10,000 scrapping incentive
Maharashtra Rs 5,000/ kWhRs 10,000 for the 1st 10 lakh buyersNo 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/ kWhRs 20,000 for the first 3,500 electric scooterNo road tax, registration fees
GujaratRs 10,000/ kWh Rs 20,000 for the first 1.1 lakh electric two-wheelersNo road tax, registration fees
ChandigarhRs 20,000 for the first 3,000 vehiclesNo road tax, registration fees
AssamRs 10,000/ kWhRs 20,000No road tax, registration fee
BiharRs 10,000/ kWhRs 20,000No road tax, registration fee up to Rs 14,000 subsidy on Li-ion battery
GoaRs 10,000/ kWhRs 30,000 per annum for 5 yearsNo road tax, registration fee up to Rs 10,000 scrapping incentive
Rajasthan Rs 2,500/ kWhRs 10,000No road tax, registration fee SGST reimbursement
OdishaRs 5,000No road tax, registration fee
West BengalRs 10,000/ kWhRs 20,000No road tax, registration fee
Uttar PradeshN/AN/ANo road tax, the registration fee for the first 1 lakh electric scooters/ bikes
Madhya PradeshN/AN/ARegistration fee waiver
KerelaN/AN/ARegistration and road tax waiver
PunjabN/AN/ANo road tax, registration fees
KarnatakaN/AN/ARegistration and road tax waiver
Andhra PradeshN/AN/ANo road tax, registration fee till 2024
Tamil NaduN/AN/ARegistration fee waiver until 2024 No road tax
UttarakhandN/AN/ANo road tax, the registration fee for the first 1 lakh electric scooters/ bikes

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In Delhi, electric vehicle subsidies are the highest. Maharashtra and Meghalaya follow. The majority of regions have also exempted road tax, with the exception of Gujarat, which charges 50 percent of road tax with the purchase price. Currently, the number of states that do not offer any subsidies is much higher and includes Karnataka, Andhra Pradesh, Madhya Pradesh, and Tamil Nadu among others.

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State-wise electric car subsidies in India

Different states are providing subsidies for more than just electric scooters. The Tata Nexon EV and Hyundai Kona Electric are both electric cars that offer special benefits to buyers. Here is a state-by-state breakdown of where you can get the best subsidy for your EV purchase.

StateBattery capacity costMax SubsidyOther benefits
MaharashtraRs 5,000/ kWhRs 1,50,000 for the first 10,000 buyersNo road tax, registration fees up to Rs 1,00,000 early bird incentive till December 31st up to Rs 25,000 scrapping incentive
DelhiRs 10,000/ kWhRs 1,50,000 for the first 1,000 buyersNo road tax, registration fee
GujaratRs 10,000/ kWhRs 1,50,000 for the first 10,000 buyersNo road tax, registration fee
AssamRs 10,000/ kWh for electric cars priced above Rs 15 lakhRs 1,50,000 for the first 25,000 buyersNo road tax, registration fees
BiharRs 10,000/ kWhRs 1,50,000 for the first 5,000 buyersNo road tax, registration fees
West BengalRs 10,000/ kWhRs 1,50,000No road tax, registration fees
Meghalaya Rs 10,000/ kWh for electric four-wheelers priced above Rs 15 lakhRs 60,000 for the first 2,500 buyersNo road tax, registration fees
GoaRs 10,000/ kWhRs 1,50,000 for the first 500 electric carsNo road tax, registration fees
OdishaN/ARs 1,00,000No road tax, registration fees
ChandigarhN/AN/ANo road tax, registration fees till 2024
PunjabN/AN/ANo road tax, registration fees
UttarakhandN/AN/ANo road tax, registration fees for the first 1 lakh electric vehicles
Uttar PradeshN/AN/ANo road tax, registration fees for the first 1 lakh electric vehicles
Madhya PradeshN/AN/ANo registration fees
KarnatakaN/AN/ANo road tax, registration fees
RajasthanN/AN/ANo road tax, registration fees
KerelaN/AN/ANo road tax, registration fees
TelanganaN/AN/ANo road tax, registration fees
Tamil NaduN/AN/ANo road tax, registration fees
Andhra PradeshN/AN/ANo road tax, registration fees

As we can see from the above table, Maharashtra and Delhi led the way when the schemes began. It appears that early bird incentives are already being taken advantage of. Other states continue to push more people to buy EVs in the country. Except for Gujarat, all states have exempted electric cars from road tax.

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