State-wise EV subsidies India: A handy list of incentives and benefits for electric vehicles in every Indian state.

The notion of electric cars was previously considered pretty out-there; however, with the current state of electric cars, they are becoming more and more affordable and accessible to the everyday consumer. E-cars like Tesla and Nissan Leaf along with subsidies and proposals by both local and national governments around the globe will most likely be the future for all modes of transportation.

As we know it by now, these models were never intended for personal use. But that is beginning to change in some countries where policymakers, government officials and consumers see buying an e-vehicle as a political statement, something that betrays support for cleaner transportation. Energy storage for self charging is another incentive buyers express when deciding on an EV purchase over a traditional car.

However, there are distinct subsidies that depend on regional availability for electric vehicles. This means that the benefits are more significant in some regions, bringing EVs closer to being an accessible option for mass-market buyers. So, which Indian state provides the most worthwhile subsidies on the purchase of an electric vehicle? Let’s take a closer look.

State-specific EV policies have been drawn up for a four-to-five-year period from the time of notification, and will only subsidise a limited number of vehicles. Most Indian states, in their EV policies, have decided to allot subsidies for electric two wheelers (that are eligible for incentives under the FAME-II scheme) on the basis of whether or not they integrate eCertifications. The incentive amount (more specifically the reimbursement value) is decided upon based on either a ‘per kWh of battery capacity’ basis or according to whether or not the vehicle integrates an eLeport certificate as reported by the manufacturer.

Leading the way in terms of the highest subsidy available is Delhi, which offers an incentive of Rs 5,000 per kWh , and a maximum of Rs 30,000 (the bigger the battery, the larger the subsidy). Second on the list currently is Maharashtra, which offers a subsidy of Rs 5,000 per kWh with a maximum cap at Rs 10,000. However for electric two wheelers with batteries larger than 3 kWh there’s a special early bird incentive worth up to 15,000 rupees .

Different states and regions offer varying incentives on e-bikes:

Stateper kWh of battery capacityMax subsidyRoad tax exemption
DelhiRs 5,000Rs 30,0001
MaharashtraRs 5,000Rs 25,000*1
MeghalayaRs 10,000Rs 20,0001
GujaratRs 10,000Rs 20,0000.5
AssamRs 10,000Rs 20,0001
Bihar^Rs 10,000Rs 20,0001
West BengalRs 10,000Rs 20,0001
RajasthanRs 2,500Rs 10,000NA
OdishaNARs 5,0001
Uttar PradeshNoNo1
KeralaNoNo0.5
KarnatakaNoNo1
Tamil NaduNoNo1
TelanganaNoNo1
Madhya PradeshNoNo0.99
Andhra PradeshNoNo1
PunjabNoNo1

The states of Meghalaya, Assam, Gujarat and West Bengal offer a higher per kWh subsidy of Rs 10,000, with the total subsidy available capped at Rs 20,000. Bihar’s EV policy – currently yet to be approved – also offers similar benefits. Rajasthan offers a subsidy of Rs 5,000 for two-wheelers with a 2 kWh battery, and up to Rs 10,000 for one with a battery bigger than 5 kWh. Odisha, on the other hand, offers a flat subsidy of Rs 5,000.

States including Andhra Pradesh, Karnataka, Madhya Pradesh, Telangana, Tamil Nadu, Uttarakhand, Punjab, and Uttar Pradesh do not provide any subsidies directly for anyone who wishes to purchase an electric two-wheeler.

Road tax for electric vehicles is completely waived in most states, except for in Gujarat and Kerala where buyers pay 50% of the total road tax amount.

State EV subsidies on electric cars, SUVs and corporate vehicles:

Stateper kWh of battery capacityMax subsidyRoad tax exemption
MaharashtraRs 5,000Rs 2,50,000*1
DelhiRs 10,000Rs 1,50,0001
GujaratRs 10,000Rs 1,50,0000.5
AssamRs 10,000Rs 1,50,0001
Bihar^Rs 10,000Rs 1,50,0001
West BengalRs 10,000Rs 1,50,0001
OdishaNARs 1,00,0001
MeghalayaRs 4,000Rs 60,0001
RajasthanNoNoNA
Uttar PradeshNoNo0.75
KeralaNoNo0.5
KarnatakaNoNo1
Tamil NaduNoNo1
TelanganaNoNo1
Madhya PradeshNoNo0.99
Andhra PradeshNoNo1
PunjabNoNo1

Electric cars are expensive. Three-wheelers, SUVs and even two-wheelers are also expensive! But the public is much more willing to invest in the latter because they’re commonly used modes of transportation. Other kinds of electric vehicles, like three-wheeled EVs, for example – which often serve as auto rickshaws – are much less common. The purchase or maintenance costs (if any) for these kinds of EVs will probably never make them widespread public transportation options unless there is a large shift in the government’s policy towards intercity travel.

For four-wheelers, Maharashtra currently leads. The base incentive of Rs 5,000 per kWh is the same as for electric two-wheelers, but the maximum subsidy is capped at 1.5 lakh. However with an early bird incentive of up to 1 lakh accounted for, the total subsidy amount rises to 2.5 lakh.

The States of Delhi, Gujarat, Assam and West Bengal give a higher incentive of Rs 10k per kWh, though the total subsidy is limited to 1.5 lakhs for EVs in Delhi while it varies from State to State. Bihar’s yet-to-be-notified EV policy also mentions similar benefits. Odisha offers an incentive of up to Rs 1 lakh for eligible vehicles, while Meghalaya gives very less incentives but are still same.

All of the nine states given in the original list don’t provide direct subsidies for electric cars or SUVs under their policies. Although other states do mostly provide these kinds of subsidies, electric four-wheelers are taxed to varying degrees like how Gujarat and Uttar Pradesh require buyers to pay 50 percent of the total tax while West Bengal only requires electric four-wheelers owners to pay 30 percent of the tax imposed on other vehicles.

Electric vehicles have been growing in popularity over the last few years, leading the government to eliminate the fees associated with registering them. In August, India’s Ministry of Transport announced that all battery-operated vehicles are exempt from ‘the payment of fees for the purpose of issue or renewal of registration certificate’.