As India drives toward a greener future, electric vehicles (EVs) are rapidly gaining popularity among urban and rural commuters alike. With growing awareness of climate change and rising fuel prices, the government is offering strong support in the form of electric car subsidy India 2025 initiatives. These subsidies and incentives aim to make EVs not just an eco-friendly choice—but a financially smart one too.
Let’s explore the EV benefits India offers across different states, the types of incentives available, and how you can save significantly on your next EV purchase.
Why EVs Are the Future in India?
India’s goal of reaching net zero emissions by 2070 is ambitious—and electric vehicles are a cornerstone of that plan. Here’s why EVs are gaining momentum:
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Rising petrol and diesel costs
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Government-backed manufacturing and charging infrastructure
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Growing awareness of environmental impact
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Long-term savings in fuel and maintenance costs
With the electric car subsidy India 2025 plan, EVs are now more affordable than ever.
Types of EV Purchase Incentives in India
Both the central and state governments are offering a wide range of EV purchase incentives. These include:
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Upfront purchase subsidies: Discounts on the ex-showroom price
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Road tax exemption: No or minimal road tax for EVs
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Registration fee waiver: No registration charges in many states
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Income tax benefits: Tax deductions on interest paid for EV loans
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Charging infrastructure support: Subsidies for installing home/public EV chargers
State-Wise Electric Car Subsidy India 2025
Here’s a look at the EV subsidies and incentives being offered by major Indian states in 2025:
| State | Subsidy Amount | Other EV Benefits India |
|---|---|---|
| Delhi | ₹10,000 per kWh (up to ₹1.5 lakh) | No road tax, registration fee waiver, scrappage incentive |
| Maharashtra | ₹5,000 per kWh (up to ₹1 lakh) | Early bird incentive, road tax & registration exemptions |
| Gujarat | ₹10,000 per kWh (up to ₹1.5 lakh) | Full exemption from registration & road tax |
| Tamil Nadu | 100% road tax waiver for 10 years | No registration fees, capital subsidies for EV manufacturers |
| Karnataka | No direct subsidy, but full tax exemptions | EV ecosystem investment support, charging infra subsidies |
| Uttar Pradesh | Up to ₹1 lakh incentive | Road tax and registration fee waivers |
| Telangana | ₹10,000 per kWh (up to ₹1.5 lakh) | 100% exemption on road tax & registration fee |
| Rajasthan | ₹5,000 to ₹20,000 based on battery size | Interest subsidies on loans for EVs |
How to Avail EV Subsidies in India
Wondering how to actually claim these EV purchase incentives? Here’s a simplified guide:
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Choose an eligible EV model (subsidies apply only to approved models)
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Buy from a certified dealership
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Submit required documents such as Aadhaar, vehicle invoice, and bank details
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Claim the subsidy online or via dealership (varies by state)
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Track your subsidy through the state’s official EV portal
Central Government Support – FAME II Scheme
Besides the state-level subsidies, the central government continues to run the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme in 2025. It provides:
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Subsidy of up to ₹15,000 per kWh for electric two-wheelers
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Support for e-buses, charging infrastructure, and fleet EVs
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Targeting 10 lakh e-two-wheelers, 5 lakh e-three-wheelers, and more
The combination of FAME II + state incentives creates a compelling case for EV adoption across India.
Real-World Savings Example
Let’s see how this plays out for a buyer in Delhi purchasing an electric car priced at ₹14 lakh (ex-showroom):
| Price Component | Amount (₹) |
|---|---|
| Ex-showroom Price | ₹14,00,000 |
| State Subsidy (Delhi) | -₹1,50,000 |
| FAME II Central Subsidy | -₹1,20,000 |
| Road Tax & Registration | Waived |
| Effective Cost | ₹11,30,000 |
That’s a saving of ₹2.7 lakh—not including future fuel and maintenance savings!
Final Thoughts
Whether you’re a city commuter or planning to go green for the planet, the electric car subsidy India 2025 makes switching to an EV a smarter and more affordable decision than ever before. With strong EV benefits India across central and state levels, 2025 is shaping up to be the year of the electric revolution in India.
Frequently Asked Questions (FAQs)
1. Are EV subsidies in India available for all car models?
No. Only government-approved models under the FAME II scheme and state EV policies are eligible for subsidies.
2. Can I claim both central and state EV purchase incentives?
Yes! Most states allow you to stack both central (FAME II) and state-level subsidies for maximum savings.
3. How long will the EV subsidies be available in India?
Subsidies are expected to continue through 2025, but availability can vary based on budget allocations and policy updates.
4. Do I need to apply for EV subsidies separately?
It depends on the state. Some apply the subsidy automatically through the dealership; others require you to apply through their EV portal.
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