At this point, you are probably familiar with the benefits and effectiveness of buying an electric scooter in India. Also, the surging fuel rates across the nation are forcing people to make a switch from diesel or petrol-powered vehicles to electric. But it’s not that the majority of the population feels it is affordable to buy an EV. Not every family can entertain the current price of EVs at which they are marketed. However, Indians are fortunate enough, because the Government has realised the importance of adapting to electric-powered vehicles. They have rolled out special subsidy plans for people buying electric vehicles. So, let’s take a look at how much incentive the government is offering to EV buyers.
Central Government Subsidy Plan for Electric Scooter and Electric Car Buyers
The Central Government under FAME-II or Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, in India, is offering incentives to people buying electric vehicles: cars or scooters.
Here are the incentives offered:
- Buyers will get a direct subsidy of ₹15,000 or a maximum of 40% of the cost of the vehicle on the basis of per kWh of battery capacity on both electric cars & bikes.
- And ₹10,000 or a maximum ₹1.5 lakh of direct incentive on the basis of per kWh of battery capacity on electric cars and “ up to Rs 13,000 per e4W (plug-in hybrid, strong hybrid) capped at 20 per cent of vehicle cost.”
Furthermore, the additional schemes of the Ministry of Finance offer “a lower rate of GST at 5 per cent on all EVs and tax benefits of up to Rs 1.5 lakh for first-time buyers. Having said that, these EV subsidies/ incentives are over and above the state incentives and are applicable throughout India. They only apply to the first 10 lakh electric two-wheelers and 55,000 electric four-wheelers, priced under Rs 1.5 lakh and 15 lacks respectively.”
List of Subsidises Offered on Electric Bikes and Electric Scooter By Different States
| State | Battery Capacity Cost | Max Subsidy | Other Benefits |
| Delhi | Rs 5,000/ kWh | Rs 30,000 | No road tax, registration fees, up to Rs 10,000 scrapping incentive |
| Maharashtra | Rs 5,000/ kWh | Rs 10,000 for the 1st 10 lakh buyers | No road tax, registration fees, up to Rs 15,000 early-bird incentive till December 31st, up to Rs 7,000 scrapping incentive, Rs 12,000 incentive with buyback scheme, min 5 years warranty on the battery |
| Meghalaya | Rs 10,000/ kWh | Rs 20,000 for the first 3,500 electric scooter | No road tax, registration fees |
| Gujarat | Rs 10,000/ kWh | Rs 20,000 for the first 1.1 lakh electric two-wheelers | No road tax, registration fees |
| Chandigarh | – | Rs 20,000 for the first 3,000 vehicles | No road tax, registration fees |
| Assam | Rs 10,000/ kWh | Rs 20,000 | No road tax, registration fee |
| Bihar | Rs 10,000/ kWh | Rs 20,000 | No road tax, registration fee, up to Rs 14,000 subsidy on Li-ion battery |
| Goa | Rs 10,000/ kWh | Rs 30,000 per annum for 5 years | No road tax, registration fee, up to Rs 10,000 scrapping incentive |
| Rajasthan | Rs 2,500/ kWh | Rs 10,000 | No road tax, registration fee, SGST reimbursement |
| Odisha | – | Rs 5,000 | No road tax, registration fee |
| West Bengal | Rs 10,000/ kWh | Rs 20,000 | No road tax, registration fee |
| Uttar Pradesh | – | – | No road tax, registration fee for the first 1 lakh electric scooters/ bikes |
| Madhya Pradesh | – | – | Registration fee waiver |
| Kerela | – | – | Registration and road tax waiver |
| Punjab | – | – | No road tax, registration fees |
| Karnataka | – | – | Registration and road tax waiver |
| Andhra Pradesh | – | – | No road tax, registration fee till 2024 |
| Tamil Nadu | – | – | Registration fee waiver until 2024, No road tax |
| Uttarakhand | – | – | No road tax, registration fee for the first 1 lakh electric scooters/ bikes |
Also read:
RBI Allows Banks to Offer Pre-Approved Loans Through UPI
List of Subsidises Offered on Electric Cars By Different States:
| State | Battery Capacity Cost | Max Subsidy | Other Benefits |
| Maharashtra | Rs 5,000/ kWh | Rs 1,50,000 for the first 10,000 buyers | No road tax, registration fees, up to Rs 1,00,000 early bird incentive till December 31st, up to Rs 25,000 scrapping incentive |
| Delhi | Rs 10,000/ kWh | Rs 1,50,000 for the first 1,000 buyers | No road tax, registration fee |
| Gujarat | Rs 10,000/ kWh | Rs 1,50,000 for the first 10,000 buyers | No road tax, registration fee |
| Assam | Rs 10,000/ kWh for electric cars priced above Rs 15 lakh | Rs 1,50,000 for the first 25,000 buyers | No road tax, registration fees |
| Bihar | Rs 10,000/ kWh | Rs 1,50,000 for the first 5,000 buyers | No road tax, registration fees |
| West Bengal | Rs 10,000/ kWh | Rs 1,50,000 | No road tax, registration fees |
| Meghalaya | Rs 10,000/ kWh for electric four-wheelers priced above Rs 15 lakh | Rs 60,000 for the first 2,500 buyers | Rs 60,000 for the first 2,500 buyers |
| Goa | Rs 10,000/ kWh | Rs 1,50,000 for the first 500 electric cars | No road tax, registration fees |
| Odisha | – | Rs 1,00,000 | No road tax, registration fees |
| Chandigarh | – | – | No road tax, registration fees till 2024 |
| Punjab | – | – | No road tax, registration fees |
| Uttarakhand | – | – | No road tax, registration fees for the first 1 lakh electric vehicles |
| Uttar Pradesh | – | – | No road tax, registration fees for the first 1 lakh electric vehicles |
| Madhya Pradesh | – | – | No registration fees |
| Karnataka | – | – | No road tax, registration fees |
| Rajasthan | – | – | No road tax, registration fees |
| Kerala | – | – | No road tax, registration fees |
| Telangana | – | – | No road tax, registration fees |
| Tamil Nadu | – | – | No road tax, registration fees |
| Andhra Pradesh | – | – | No road tax, registration fees |
