Subsidy for cars: Rs 10,000 per kWh of battery capacity, up to Rs 1.5 lakh + registration and road tax exemption

Subsidy for two-wheelers: Rs 5,000 per kWh of battery capacity, up to Rs 30,000 + registration and road tax exemption Here are the five Indian states that offer the most incentives on EVs: Some state governments have invested in EV adoption by offering incentives to electric car buyers that supplement the Centre’s subsidies. First-time individual buyers who take a loan can also get tax benefits of up to Rs 1.5 lakh under Section 80EEB of the Income Tax Act.Īs for charging infrastructure, several state governments have taken up the Centre’s directives for setting up charging stations for electric cars and bikes across the country. But don’t worry, even if your next EV is not one of these three, a recently drafted amendment to the Central Motor Vehicle Rules, once approved, will exempt all electric vehicles from registration and renewal fees across the country.Īll EVs are currently subjected to a lower rate of the Goods and Services Tax (GST) at 5 per cent, which can be nearly 6 to 8 times less than that of petrol and diesel cars. From the cars that are currently on sale in India, the Tata Nexon EV, Mahindra e-Verito and Tata Tigor EV fulfil the eligibility criteria under this scheme. The above benefits are applicable on the electric cars and two-wheelers that meet the criteria defined under the FAME-II scheme, over and above state government concessions. The new incentives are as follows:įor two-wheelers: Rs 15,000 per kWh of battery capacity, up to 40 per cent of the vehicle costįor four-wheelers: Rs 10,000 per kWh of battery capacity, up to Rs 1.5 lakh The Department of Heavy Industries changed the 2019 Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME-II) scheme to offer 50 per cent higher incentives on two-wheeler EVs. So, on this World Environment Day, we have decoded the various schemes and incentives awarded by central and state governments to make your decision of switching to an electric car or bike easier.įirst, let’s talk about the central government’s scheme. The incentives vary depending on which Indian state you live in, plus new concessions are rolled out as electric vehicle regulations evolve, confusing EV buyers even more. To help this, the Indian government has been progressively taking steps to accelerate EV adoption in the country by rolling out various subsidies and incentives to both manufacturers and car buyers. You can save as much as Rs 5 lakh on an electric car if you live in Mumbai thanks to government subsidies!Įlectric cars are still not as affordable in India as they are in many developed countries.

Incentive for hybrid vehicles