Explore electric vehicle subsidy in India, check state & central incentives, eligibility, and learn how to apply to save on your EV purchase.
Anjali Singh
Assistant Manager
It’s the 21st Century, and Electric Vehicles have taken over the global automobile scene for all the right reasons. They reduce the dependence on fossil fuels and help prevent noise and air pollution by a striking margin. This green initiative is also supported by the Indian government with new-age policies for promoting the manufacturing and sale of EVs. In September 2024, the Indian cabinet approved a total of 109 billion rupees in incentives to promote EVs and a greener Indian future. Under this initiative, there are several subsidies and financial incentives offered by both the state and central governments to lessen the burden on the taxpayer.
Are you thinking about how to apply for an electric vehicle subsidy in India? You are at the right spot. In this guide, we have jotted down some important information about electric vehicle subsidy schemes, the application process, and eligibility.
Over the last few years, the central government has issued several schemes to empower the sale of EVs in India. Here are a few of them that can help reduce the upfront or everyday cost of your vehicle:
On 29 September 2024, the PM E-Drive scheme was introduced by the Ministry of Heavy Industry (MHI). This helps the faster adoption of electric transportation in India.
Eligibility
Subsidy for electric vehicles under this scheme:
|
Vehicle |
Subsidy (FY 2025-26) |
Maximum Incentive |
|
Two-Wheelers |
₹ 2,500/kWh |
₹ 10,000 (2024-25) ₹ 5,000 (2025-26) |
|
Three-Wheelers |
₹ 2,500/kWh |
₹ 50,000 (2024-25) ₹ 25,000 (2025-26) |
|
E-Buses |
₹ 10,000/kWh |
₹ 20 - 35 lakhs (based on size and type of e-buses) |
This revolutionary EV scheme helps reduce the upfront cost of electric vehicles for buyers.
Eligibility
Subsidy for electric vehicles under this scheme:
|
Vehicle Category |
Incentive Rate (per kWh) |
Approximate Battery Capacity |
Maximum Subsidy / Incentive |
|
Two-Wheelers |
₹15,000 per kWh (up to 40% of vehicle cost) |
2 kWh |
₹30,000 |
|
Three-Wheelers |
₹10,000 per kWh |
5 kWh |
₹50,000 |
|
Four-Wheelers |
₹10,000 per kWh |
15 kWh |
₹1,50,000 |
|
E-Buses |
₹20,000 per kWh |
250 kWh |
₹50,00,000 |
Here is a list of all the Indian states offering subsidies and tax exemptions for Electric vehicle buyers in India:
|
State |
Subsidy (Per kWh) |
Maximum Subsidy |
Discount on Road Tax |
|
Andhra Pradesh |
Nil |
Nil |
100% |
|
Assam |
₹10,000 |
₹1,50,000 |
100% |
|
Bihar |
₹10,000 |
₹1,50,000 |
100% |
|
Gujarat |
₹10,000 |
₹1,50,000 |
50% |
|
Karnataka |
Nil |
Nil |
100% |
|
Kerala |
Nil |
Nil |
50% |
|
Madhya Pradesh |
Nil |
Nil |
99% |
|
Meghalaya |
₹4,000 |
₹60,000 |
100% |
|
Odisha |
N/A |
₹1,00,000 |
100% |
|
Punjab |
Nil |
Nil |
100% |
|
Tamil Nadu |
Nil |
Nil |
100% |
|
Telangana |
Nil |
Nil |
100% |
|
Uttar Pradesh |
Nil |
Nil |
75% |
|
Maharashtra |
₹5,000 |
₹2,50,000 |
100% |
|
West Bengal |
₹10,000 |
₹1,50,000 |
100% |
Follow these steps to ensure a seamless and smooth electric vehicle subsidy apply online process for your EV:
Opting for a reputable and credible financing option is crucial for future EV purchases. My Mudra offers you access to low-interest EV loans to help you fund your dream car or bike. An electric vehicle loan not only allows you to finance your vehicle but also comes with several benefits. Here’s why My Mudra is a go-to choice for every EV enthusiast:
Plus, our expert financing team will take care of your queries and documentation for a hassle-free process. Finance your dream ride with My Mudra!
Are you searching for an EV in the trending automobile sector? Do not forget to apply for a subsidy to reduce your automobile costs. Indian central and state governments have introduced several policies that offer subsidies for EV purchase. Financial platforms like My Mudra help you get hold of some lucrative EV loans within a few steps.
Also Read:
- What is an Electric Vehicle Loan (Green Car Loan)?
- Why an EV Loan is the Future of Smart Borrowing
Gujarat and Maharashtra offer the highest subsidy rates on EVs in India.
The EV Mitra Scheme of 2025 offers incentives and subsidies for the development of EV charging stations in India.
You can apply for the EV loan through My Mudra’s official website. Simply choose your bank or NBFC and fill in all the required information. Follow it up with essential documentation, and after the verification, you will get access to the EV loan.
Assistant Manager
Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.
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