Government schemes and subsidies

Central government schemes

FAME-II / PM E-DRIVE

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme provides demand incentives for EV buyers. Current rates:

2-wheelers: Up to ₹10,000 per kWh, max ₹1,00,000

3-wheelers: Up to ₹10,000 per kWh

4-wheelers: No direct consumer subsidy currently (fleet/commercial only)

E-buses: Significant subsidy under National e-Bus Programme

PLI scheme

The Production Linked Incentive scheme for Advanced Chemistry Cells (ACC) incentivizes domestic battery manufacturing. This indirectly reduces EV prices as local battery supply grows.

State subsidies

Most Indian states have their own EV policies. Benefits typically include:

Purchase subsidy: ₹10,000-₹1,50,000 depending on state and vehicle type

Road tax exemption: Full or partial

Registration fee waiver: Full waiver in most states

Reduced electricity tariff: Some states offer discounted EV charging rates

Use the subsidy calculator on each EV model page to see exact savings for your state.