Electric vehicle (EV) adoption has become a significant component of India’s clean energy initiative as the country races to achieve a greener, more sustainable future. EVs also provide a disruptive opportunity to an increase in pressures from air pollution, fossil fuel dependency and climate change. Subsidies play an important role as an enabler.
Subsidies are key enablers of the EV shift, as they help to alleviate the upfront and continuing costs associated with owning an EV. They help narrow the cost differential between an electric vehicle to an internal combustion engine vehicle, whether this is in the form of tax credits, direct purchase incentives, or incentives for infrastructure.
This article explores the top 10 state-level EV subsidies in India that are making ownership more accessible and financially viable. Each state has implemented a distinct policy at various points in time, reflecting local priorities, infrastructure readiness, and buyer demand.
What is Subsidy?
Subsidy is a monetary or incentive offered by the Government to reduce the cost of a good or service. Subsidy reduces the price paid on the purchase price, infrastructure costs or operating costs of EVs so consumers can change from ICE vehicles to EVs. There are several subsidy types including: infrastructure grants, tax exemption, reduced registration costs, and/or direct money.
1. Delhi
Policy Introduced: August 2020
Subsidy Features:
- ₹10,000 per kWh of battery capacity, capped at ₹1.5 lakh for four-wheelers and ₹30,000 for two-wheelers.
- A bonus ₹30,000 for e-ricksha’s and e-carts.
- Subsidy of ₹5,500 for e-bikes and e-cycles.
- Exemption from road taxes and registration fees.
- Support for building charging stations.
Benefit: One of the best subsidies per kWh; pay quickly, and there are incentives to better subsidize and other incentives for early movers.
2. Gujarat
The policy was released in July 2021
The features of the subsidy:
- ₹10,000 per kWh for all kinds of EV.
- The total maximum subsidy amount is ₹1.5 lakh.
- up-to ₹10 lakh capital subsidy for the installation of charging stations.
- Complete waiver of registration charges.
Advantage: Great for both fleet and private users and balanced infrastructure and buyer support.
3. Tamil Nadu
The policy was enacted in Feb 2023 and only active to Dec 2025.
The features of the subsidy:
- Two-wheeler subsidy of ₹10,000 per kWh with a maximum subsidy of ₹30,000.
- 20% off e-cycles (up to ₹5,000).
- No road tax and registration fees.
- Infrastructure with a 25% capital subsidy for charging stations.
Benefit: Attractive for first-time EV buyers and businesses building chargers.
4. Maharashtra
Policy Launched: July 2021
Subsidy details:
- ₹5,000 per kWh up to four-wheeler subsidy with ₹1 lakh.
- 15% subsidy on the ex-showroom price (car value).
- Incentive for early adoption and vehicle scrappage.
- Infrastructure grant for 250 charging stations.
Benefits: Large entitlement for early bird; incentive for scrappage of old vehicles.
5. Haryana
Policy Launched: December 2022
Subsidy Details:
- ₹25,000 for e-rickshaw, e-carts, etc.
- ₹50,000 for light four-wheelers etc.
- 15% subsidy for 2,000 cars.
- 10% for first 200 e-buses
- Additional benefits: Interest-free loans, toll waivers, etc.
Benefits: equal support for individual users and commercial fleets.
6. Uttar Pradesh
Policy Introduced: October 2022
Subsidy Features:
- ₹5,000 subsidy for two-wheelers.
- ₹12,000 subsidy for three-wheelers.
- ₹1 lakh subsidy for four-wheelers.
- 100% exemption on road tax and registration fees.
Benefit: Covers all popular EV segments; tax savings for rural and urban buyers.
7. Rajasthan
Policy Introduced: September 2021
Subsidy Features:
- ₹5,000 to ₹10,000 for two-wheelers depending on battery size.
- ₹10,000–₹20,000 for three-wheelers.
- Direct bank transfer of subsidy amount.
Benefit: Quick cash transfer model; simple documentation.
8. Odisha
Policy Introduced: August 2021
Subsidy Features:
- 15% subsidy on vehicle cost: ₹5,000 (2W), ₹12,000 (3W), ₹1 lakh (4W).
- ₹20 lakh subsidy on electric buses.
- 100% SGST and road tax refund.
- ₹5,000 per charger support for infrastructure.
Benefit: Comprehensive coverage including public transport and infrastructure.
9. Kerala
Policy Introduced: March 2022
Subsidy Features:
- 50% exemption on road tax for 5 years.
- ₹25,000–₹30,000 for electric auto-rickshaws.
- Support for electric public transport and shared mobility.
Benefit: Strong support for commercial and shared vehicle categories.
10. Telangana
Policy Introduced: October 2020
Subsidy Features:
- 100% exemption on road tax and registration fees.
- Capital investment subsidy up to ₹30 crore for EV-related industries.
- Power tariff subsidies for charging infrastructure.
Benefit: Best suited for industrial EV investors and B2B fleet operators.
Conclusion
State subsidies are powerful levers for change. They not only make EVs financially attractive but also send a clear policy signal about India’s clean transport priorities. Each state’s unique implementation reflects regional strategies and adoption goals. As India moves ahead with its national-level FAME incentives and state-level enhancements, EV buyers in 2025 are poised to benefit like never before. Whether it’s a generous per-kWh subsidy or an exemption from road tax, knowing your state’s benefits can make all the difference in your next EV purchase.
The electric future is here, and thanks to smart subsidies, it’s more accessible than ever.
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