More and more countries are starting to shift away from combustion engines. They are also setting their goals of achieving a sustainable future. 196 Parties to the Paris Agreement committed to sustainable development in 2015 and to keep global warming below 2°C, ideally 1.5°C, above pre-industrial levels.
To achieve the goal, global carbon dioxide emissions must be decreased by 45% by 2030 from 2010 and reach net zero by 2050. Globally averaged CO2 mole fractions exceeded 410 ppm in 2020.
Accordingly, more countries are urging the use of electric vehicles, and India is no exception.
India has taken initiatives to boost electric vehicles in the country. There are numerous subsidies and incentives offered to both automakers and car purchasers. The incentives vary by the Indian state, and new concessions are introduced as electric car legislation evolves, further confounding EV purchasers.
The Department of Heavy Industries modified the 2019 Faster Adoption and Manufacturing of Hybrid and Electric Cars (FAME-II) program to increase incentives for two-wheeled electric vehicles by 50 percent. The incentives are as follows:
For two-wheelers: Rs 15,000 per kWh of battery capacity, up to 40% of the vehicle cost
For four-wheelers: Rs 10,000 per kWh of battery capacity, up to Rs 1.5 lakh
According to CarDekho, these are the top states in India that give out the best incentives for electric vehicles.
1. Delhi
Subsidy for two-wheelers: Rs 5,000 per kWh of battery capacity, up to Rs 30,000 + registration and road tax exemption
Subsidy for cars: Rs 10,000 per kWh of battery capacity, up to Rs 1.5 lakh + registration and road tax exemption
The advantages of purchasing an electric vehicle in Delhi can be roughly double those in other states. The state administration has exempted all sorts of electric vehicles from paying registration fees and road taxes. Currently, 72 charging stations are listed on the Delhi government’s website. However, subsidies are already waived for cars as the 1,000-car limit was reached in the state.
2. Gujarat
Subsidy for two-wheelers: Rs 10,000 per kWh of battery capacity, up to Rs 20,000 + registration and road tax exemption
Subsidy for cars: Rs 10,000 per kWh of battery capacity, up to Rs 1.5 lakh + registration and road tax exemption
Gujarat’s 2021 EV program increases the per-kWh subsidy, but the maximum grant is the same as FAME-II. Twenty thousand vehicles and 1.1 lakh electric two-wheelers are its beneficiaries.
3. Meghalaya
Subsidy for two-wheelers: Rs 10,000 per kWh of battery capacity + registration and road tax exemption
Subsidy for cars: Rs 4,000 per kWh of battery capacity + registration and road tax exemption
Meghalaya’s 2021 EV policy is aimed at early adopters in the north-eastern state. It will cover 3,500 two-wheelers and 2,500 four-wheelers. Meghalaya exempts EVs from registration fees and road tax for five years.
4. Karnataka
Subsidy for two-wheelers: registration and road tax exemption
Subsidy for cars: registration and road tax exemption
The state has modified its EV policy to offer more exemptions and incentives for EV component and battery production, battery swapping, and EV charging businesses.
5. Andhra Pradesh
Subsidy for two-wheelers: registration and road tax exemption
Subsidy for cars: registration and road tax exemption
The state government of Andhra Pradesh has promised incentives for businesses that contribute to the development of EV infrastructure, including roughly 400 charging stations.
While the adoption of EVs is becoming common, many obstacles remain. As such, not all EVs sold in India are eligible for subsidies. Heavy taxes on EVs and hybrids imported by car companies as completely built units have made it even harder for people to afford an EV.
We will still see how the government will act on EVs. The government may still change its policies as it boosts the use of electric vehicles.
For reference, India already has over 1 million registered EVs. India’s government is constantly working on improving its charging infrastructure. So far, it has over 1,000 charging stations installed.
| Indian State | Max 2-wheeler Incentive* | Max 4-wheeler Incentive* | Registration/Road Tax Exemption |
| Delhi | Rs 30,000 | Rs 1.5 lakh (subsidy discontinued) | Yes |
| Maharashtra | Rs 37,000 + Rs 7,000 scrapping incentive | Rs 2.5 lakh + Rs 25,000 scrapping incentive | Yes |
| Gujarat | Rs 20,000 | Rs 1.5 lakh | Yes |
| Meghalaya | Rs 10,000/kWh | Rs 4,000/kWh | Yes |
| Karnataka | – | – | Yes |
| Andhra Pradesh | – | – | Yes |
| West Bengal | Rs 20,000 | Rs 1.5 lakh | Yes |
| Rajasthan | Rs 10,000 | – | No, SGST reimbursement |
| Odisha | Rs 5,000 | Rs 1 lakh | Yes |
| Kerala | – | – | 50 per cent exemption |
| Uttar Pradesh | – | – | Yes for 2-wheelers, 75% road tax waiver for other EVs |
| Madhya Pradesh | – | – | Free registration, 99% tax exemption |
| Telangana | – | – | Yes |
| Tamil Nadu | – | – | Yes |
| Assam | Rs 20,000 | Rs 1.5 lakh | Yes |
| Goa | Rs 30,000 | Rs 1.5 lakh | Yes |
| Punjab | – | – | Road tax exemption |
| Bihar | Rs 20,000 | Rs 1.5 lakh | Yes |
