Vehicles have transformed our modern by providing freedom of mobility, covering long distances in a shorter period. But the technology that runs a vehicle has harmed the environment in unimaginable ways. Cars contribute significantly to air pollution, and fuel consumption and greenhouse gases account for 80% of a car's environmental impact. The government constantly emphasises buying electric vehicles to reduce dependency on the climate.
According to the government, those who buy electric vehicles by March 2024 will be eligible for a subsidy under the new EV policy. Many states provide FAME subsidies, and others plan to do so. Take a look at the table below to learn more about India's state-wise incentives for two-wheeler.
State-Wise EV Subsidies for Two-Wheelers in India
|
State |
Per kWh of battery capacity |
Max subsidy |
Road tax exemption |
|---|---|---|---|
|
Assam |
INR 10,000 |
INR 20,000 |
100% |
|
Rajasthan |
INR 2,500 |
INR 10,000 |
NA |
|
Meghalaya |
INR 10,000 |
INR 20,000 |
100% |
|
Odisha |
NA |
INR 5,000 |
100% |
|
Delhi |
INR 5,000 |
INR 30,000 |
100% |
|
Bihar^ |
INR 10,000 |
INR 20,000 |
100% |
|
West Bengal |
INR 10,000 |
INR 20,000 |
100% |
|
Meghalaya |
INR 10,000 |
INR 20,000 |
100% |
|
Gujarat |
INR 10,000 |
INR 20,000 |
50% |
|
Uttar Pradesh |
No |
No |
100% |
|
Telangana |
No |
No |
50% |
|
Karnataka |
No |
No |
100% |
|
Tamil Nadu |
No |
No |
100% |
|
Kerala |
No |
No |
50% |
|
Punjab^ |
No |
No |
100% |
|
Andhra Pradesh |
No |
No |
100% |
|
Madhya Pradesh |
No |
No |
99% |
*including early bird incentive; ^policy yet to be approved
Road tax is completely waived for electric vehicles in the majority of states where the policy is in effect, with the exception of Gujarat and Kerala, where buyers must pay 50% of the total road tax amount.
State-Wise Incentive Subsidy in EV For Four-Wheelers
Each state has its e-mobility strategy and subsidy requirements for electric vehicles in addition to the federal FAME II programme. The government's support for electric vehicles is in the table below.
|
State |
Per kWh of battery capacity |
Max subsidy |
Road tax exemption |
|---|---|---|---|
|
Maharashtra |
INR 5,000 |
INR 2,50,000* |
100% |
|
West Bengal |
INR 10,000 |
INR 1,50,000 |
100% |
|
Meghalaya |
INR 4,000 |
INR 60,000 |
100% |
|
Rajasthan |
No |
No |
NA |
|
Odisha |
NA |
INR 1,00,000 |
100% |
|
Delhi# |
INR 10,000 |
INR 1,50,000 |
100% |
|
Bihar^ |
INR 10,000 |
INR 1,50,000 |
100% |
|
Gujarat |
INR 10,000 |
INR 1,50,000 |
50% |
|
Assam |
INR 10,000 |
INR 1,50,000 |
100% |
|
Uttar Pradesh |
No |
No |
75% |
|
Andhra Pradesh |
No |
No |
100% |
|
Telangana |
No |
No |
100% |
|
Tamil Nadu |
No |
No |
100% |
|
Karnataka |
No |
No |
100% |
|
Madhya Pradesh |
No |
No |
99% |
|
Kerala |
No |
No |
50% |
|
Punjab |
No |
No |
100% |
*including early bird incentive; ^policy yet to be approved; #only for first 1,000 buyers
What is FAME EV Subsidy?
The Indian government launched the FAME India project to discourage the use of petrol and diesel-powered vehicles, and it was a vital component of the national electric mission plan.
The FAME I scheme's initial stage was approved for two years, beginning on April 1, 2015. The Electric car subsidy programme has since received sporadic extensions. FAME's initial phase was most recently extended through March 31, 2019. The scheme benefits the growth of electric cars in India.
What is FAME 2 EV Subsidy?
The government recently gave electric mobility a significant boost in the nation. The Union Cabinet, led by Prime Minister Narendra Modi, has approved the plan to implement "Faster Adoption and Manufacturing of Electric Vehicles in India Phase II in order to advance electric mobility in the nation. Under electric car subsidy, the government aims to accelerate the adoption of electric and hybrid vehicles by developing the essential EV charging infrastructure, which is essential if the nation is to embrace e-mobility.
To encourage the adoption of e-2W, the demand incentive has been raised under the FAME-II programme from INR 10,000/KWh to INR 15,000/KWh, with a cap increase from 20% to nearly 40% of the cost of the vehicle. Additionally, the FAME-India Scheme's Phase II has been extended for an additional two years, beginning on March 31, 2022.
Bottom Line
The government unveiled a Production Linked Incentive programme for automakers last year, part of which aims to increase the production of electric vehicles. It is clear that the automotive market of India is on the rise, especially regarding two-wheelers, and since the technology is environmentally friendly, it is the future. An electric vehicle has significantly lower operating costs than a petrol or diesel vehicle, making it cost-efficient. So, it is a good time to bring home a new electric two-wheeler, or if you have a bigger budget, you can go for a new electric four-wheeler.
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