How to apply for electric vehicle subsidy?

How to apply for electric vehicle subsidy?

A clean and green planet is the need of the hour. It is unimaginable to change the environment in a day’s time, but we can definitely take small steps which will show results over time. One such solution is shifting to fossil-fuel-free electric vehicles. Do you know whether India had electric vehicles in the late 1990s, however, these vehicles saw a rapid decline due to inadequate technology. With today’s advanced technology and alternative commuting options, now is the best time to adopt green modes of transport. Moreover, the Government of India provides subsidies for EVs, thereby saving lakhs. Here’s all you need to know about EV subsidy in India.

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How to apply for a vehicle loan?

While applying for an electric vehicle loan, you can follow the same steps as you do for any other vehicle loan. Here’s how to apply for a vehicle loan.

  • Choose your desired electric vehicle from your car or two-wheeler dealership.
  • Compare interest rates, maximum loan amount, & tenure offered by various lenders.
  • Once you decide on a lender, check their application process, be it online or offline.
  • Fill out the application form and submit the ID and address proof documents along with the Proforma Invoice of the car.
  • Once approved, the lender will disburse the loan amount in the name of the car dealership.

Subsidy on electric vehicles in select states

Given below are the states that offer government subsidies on EVs on both two-wheelers and four-wheelers.


If you live in Maharashtra, you can get INR 5,000 per kWh as a subsidy for EVs. If you buy a 4-wheeler electric vehicle, the maximum electric vehicle subsidy you can get is Rs 1.5 lakh if ​​you are among the first 10,000 buyers. Scrapping incentives of up to INR 25,000 can also be availed. In the case of two-wheeler loans, you can get a subsidy of up to Rs 10,000 for the first 10 lakh buyers, and you also get incentives on scrapping and buyback schemes. To increase the sales of electric vehicles, the Maharashtra government has also given exemptions in road tax and registration fees.


The government of Delhi offers an electric vehicle subsidy of 10,000 kWh on 4-wheelers with a limit of INR 1.5 lakh as the maximum subsidy for the first 1,000 buyers, and for two-wheelers, you can avail of a scrapping incentive of INR 10,000. 30,000 with a maximum subsidy of INR 5,000 per kWh. Also, you are completely waived off on charges like road tax and registration fees.

Read also – Benefits of electric cars for the environment 


For electric cars in Gujarat, you can avail INR 10,000 per kWh as an incentive, and in the early bird offer, 10,000 buyers can get up to INR 1.5 lakh in subsidy, and if you buy a two-wheeler, You are eligible to get an incentive of INR 10,000 kWh. If you are one of the first 1.1 lakh buyers, the maximum subsidy you can get is Rs 20,000. And you pay zero registration fee and road tax. The state plans to reduce CO2 emissions by 6 lakh tonnes and subsidize the purchase of 2 lakh EVs by 2025.


Assam’s electric vehicle policy, 2022 aims to improve air quality by enabling electric vehicles to contribute 25% of all new vehicle registrations by 2026, and the following are the vehicle-wise incentives offered by the state of Assam. Other incentives include no parking fee and road tax for 5 years and a retro-fitment incentive of up to Rs 15,000 for 3-seater auto rickshaws.


As on 31 October 2020, there were only 6 registered electric vehicles in Meghalaya. The government aims to enable the adoption of 20,000 electric vehicles during the policy period of 5 years. For two-wheelers with a maximum ex-factory price of Rs 1.5 lakh, the government already provides a subsidy of Rs 10,000 per kWh for the first 3500 buyers, and if you buy a 3-wheeler electric vehicle, you will get a subsidy for the first 200 electric vehicles. There is an incentive of INR 4,000 per kWh, and the ex-factory price of the vehicle should not exceed INR 5 lakh. You can avail of an incentive of Rs 4,000 on buying a 4-wheel electric vehicle with a maximum ex-factory price of Rs 15 lakh, and the early bird offer is limited to the first 2500 buyers.

Andhra Pradesh, Karnataka, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand, and Uttar Pradesh do not provide direct subsidy on EVs; However, you can get full exemption on road tax till the end of the electric vehicle policy of the respective states.

Government Subsidy on Commercial Electric Vehicles

In addition to electric car subsidies in India, the FAME scheme was also designed to encourage the manufacture and sale of commercial EVs such as electric rickshaws and electric buses and to reduce vehicular emissions by incorporating electric mobility into the public transport system. This will significantly reduce the rapidly growing challenge in major cities.

  • The government offers an incentive of Rs., and 20,000 per kWh to state transport units to encourage the purchase of electric buses. However, the subsidy may also be subject to bidding by the OEM.
  • E-buses under Rs. 2 crore and strong/plug-in hybrid commercial vehicles under Rs.15 lakh are eligible for subsidy.
  • Electric tricycles or electric rickshaws under Rs. 5 lacks are eligible for the incentive.
  • The exact amount of subsidy on commercial vehicles depends on the cost, technology, & battery capacity.

How subsidy scheme boosts electric vehicle sales in India

One of the main reasons behind the sluggish sales of electric vehicles in India is cost. The upfront cost of owning an electric vehicle is much higher than that of conventional vehicles. The second primary reason for the hesitation to adopt electric vehicles is the lack of charging infrastructure. This has created a range of anxiety among buyers and Both these issues need to be addressed to smoothen the road for electric vehicles in India. To address the above issues, the Central Government formulated the FAME Subsidy Scheme. The FAME incentive enables EV manufacturers to reduce the cost of vehicles, and a lower price tag will attract more buyers.

  • Additional state incentives make EVs more affordable. Bridges the price gap between eco-friendly and conventional vehicles.
  • With attractive central and state government subsidies, buyers can consider electric vehicles as a viable alternative to conventional vehicles.
  • Apart from private vehicles, and the FAME scheme also supports commercial vehicles. Hence, we expect the state governments to procure more battery-operated vehicles for public transport.

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How does subsidy on EVs work?

If you buy a 4-wheeler electric vehicle, you can get an electric vehicle subsidy of Rs 1.5 lakh, and if you are among the first 10,000 buyers. Scrapping incentives of up to INR 25,000 can be availed.

Do you get a grant to buy an electric car?

The Plug-in Car Grant, known as the Electric Car Grant, is available to buyers of eligible cars, vans, and motorcycles, and is administered by the Office for Low Emission Vehicles.

Are electric cars exempt from road tax?

Currently, zero-emission cars are exempt from paying any vehicle excise duty, aka road tax, including the expensive car supplement, and alternative fuel vehicles and hybrids pay a concessional rate of road tax.

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