Electric Vehicles, which have been the most talked about topic in the past decade, have been a greener alternative for ICE vehicles. There is a global rise in the EV adoption and India is at its best. With the National Electric Mobility Mission Plan (NEMMP) 2020 being imposed, the government aims to achieve national energy security, vehicular pollution and growth of domestic manufacturing capabilities by promoting hybrid and electric vehicles in the country. The government has declared to provide monetary incentives to the buyers to kick start the adoption of hybrid and electric vehicles. by providing monetary support. Every Indian state has carved the best possible subsidy on an electric vehicle for its adoption. Let us see which Indian state provides the best subsidy for you.
Under NEMMP 2020, Government has launched the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India. The FAME I scheme aimed to offer incentives for clean-fuel technology cars to boost their sales to up to 7 million vehicles by 2020 while establishing the necessary charging infrastructure for EVs. The Phase-II of FAME Scheme approves about 86% of the fund been allocated for Demand Incentive so as to create demand for EVs in the country.
Declared Central Subsidy on Electric Vehicles
As electric vehicles are not as affordable as ICE, the Indian government is accelerating EV adoption by rolling out various subsidies. Electric 2-wheelers are more affordable after the Department of Heavy Industry increased the subsidy to Rs 15000 per kWh up to 40% of vehicle cost. For four-wheelers, incentives include Rs 10,000 per kWh of battery capacity, up to Rs 1.5 lakh and Rs 20000 per kWh for the Electric Buses. After FAME II the Ather 450X, India’s fastest-selling e-bikes now cost Rs 14500 lesser. Other financial incentives that are provided in general include:-
- Road tax exemption
- Registration fee exemption
- Purchase incentives
- Government Coupons
State-wise Subsidy on Electric Vehicles
The state aims to be an early EV adopter amongst the North-East Indian states by exempting all EVs from registration fees and road tax till 2025. The state government offers lower electricity tariffs and free land to the government, public sector and private companies for setting up EV charging stations.
Subsidy for two-wheelers: Rs 10,000 per kWh of battery capacity.
Subsidy for cars: Rs 4,000 per kWh of battery capacity.
2. New Delhi
India’s capital is all set to match the incentives provided by the central government along with exciting other benefits. Full waive off of the registration fees and road tax on all types for the first 1000 electric vehicle registration.The Delhi government includes scrapping incentive of Rs 7500 for auto and LMV.
Subsidy for two-wheelers: Rs 5,000 per kWh of battery capacity up to Rs 30,000.
Subsidy for cars: Rs 10,000 per kWh of battery capacity up to Rs 1.5 lakh.
The government has taken an alternative path to promote EV adoption by providing incentives to the EV component manufacturers. EV owners will get a complete waiver of road tax and the registration fee now. The cabinet decided to give a 15% capital subsidy to investors in the electric vehicle (EV) sector on the value of fixed assets over five equal annual payments. The state aims to achieve 100% e-mobility in auto-rickshaws, cab aggregators, corporate fleets, and school buses/vans by 2030.
“Production linked subsidy of 1 per cent will be given on the company’s turnover for a period of five years beginning from the first year of commercial operations, subject to a maximum cap of 50 per cent of VFA,” – Government Order, issued on June 1 by the Commerce and Industries Department, Karnataka
Gujarat government to boost the Demand for battery-operated vehicles, planned to provide incentive for EV charging infrastructure developers and EV owners. The registration fee will be waived off and subsidy will be directly credited to bank.
Subsidy for two-wheelers: Up to Rs 20,000.
Subsidy for cars: Up to Rs 1.5 lakh.
5. Tamil Nadu
The TN government on the other hand encourages EV adoptions by exempting road tax. There is however no subsidy for the EV owners. The government is all set to develop EV park by offering 100% state GST reimbursement to attract developers. The state aims to electrify 5% of buses every year by 2030. Substantially shared mobility fleets, institutional vehicles, and e-commerce delivery and logistics vehicles are planned for EVs by 2030. EV-related and charging infrastructure manufacturing units will receive a 100% exemption on electricity tax through 2025.
These are the top 5 states that provide a maximum subsidy for electric vehicle owners and manufacturers. India is at its race to convert to an all-electric state and each government is collaboratively working towards it. The picture displays state-wise data about EV related incentives. Where some Indian state government provides exciting subsidies on all genres of electric vehicles to attract buyers, while others provide different incentives to the EV manufacturers. Most of them have exempted road tax on private and commercial battery-operated vehicles.
Now that you are quite motivated about buying an electric vehicle to contribute to green India, check out how to get Insurance for your vehicle now. Don’t worry if your state is not on the mentioned list of subsidies. Every state government has its own EV adoption policy. With the introduction to FAME II, new policies are coming up. Stay connected!